https://www.taxtmi.com/caselaws?id=184375 Interest credited in the assessee's books on advances made to a partnership firm was treated as taxable income because the assessee had voluntarily adopted the mercantile system of accounting. Under that method, credit entries for interest due are treated as receipts irrespective of actual cash movement, and the assessee could not apply a cash basis for this item while retaining mercantile accounting for the rest. On those facts, the interest was treated as income arising under the charging provision, and the reference was answered in the affirmative against the assessee. en-us Wed, 04 May 1927 00:00:00 +0530 Wed, 06 Jul 2016 18:25:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184375 Interest credited in the assessee's books on advances made to a partnership firm was treated as taxable income because the assessee had voluntarily adopted the mercantile system of accounting. Under that method, credit entries for interest due are treated as receipts irrespective of actual cash movement, and the assessee could not apply a cash basis for this item while retaining mercantile accounting for the rest. On those facts, the interest was treated as income arising under the charging provision, and the reference was answered in the affirmative against the assessee. Case-Laws Income Tax Wed, 04 May 1927 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184375