https://www.taxtmi.com/caselaws?id=186258 Income is recognised only on actual realisation or receipt of cash equivalent: substitution of a fresh mortgage for an earlier one did not amount to payment of arrears of interest, so the arrears were taxable only when later realised on judicial sale. Court deposits made against disputed claims, and amounts later decreed to a prior mortgagee, were not deductible because no actual expenditure had been incurred in the relevant year. Where a mortgagee purchased the mortgaged property at judicial sale, any excess of the bid price over the principal debt represented realised interest, accruing only when the sale became absolute on confirmation. Post-sale expenses for delivery of possession and mutation were not deductible. The bid price at public auction was accepted as the proper value absent contrary evidence. en-us Tue, 24 Jan 1933 00:00:00 +0530 Mon, 12 Sep 2016 18:38:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186258 Income is recognised only on actual realisation or receipt of cash equivalent: substitution of a fresh mortgage for an earlier one did not amount to payment of arrears of interest, so the arrears were taxable only when later realised on judicial sale. Court deposits made against disputed claims, and amounts later decreed to a prior mortgagee, were not deductible because no actual expenditure had been incurred in the relevant year. Where a mortgagee purchased the mortgaged property at judicial sale, any excess of the bid price over the principal debt represented realised interest, accruing only when the sale became absolute on confirmation. Post-sale expenses for delivery of possession and mutation were not deductible. The bid price at public auction was accepted as the proper value absent contrary evidence. Case-Laws Income Tax Tue, 24 Jan 1933 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186258