https://www.taxtmi.com/caselaws?id=5453 SC held that interest accruing on "sticky" advances is taxable as income under the mercantile system; the majority view that such accruals are not merely hypothetical was affirmed and appeals dismissed. The court rejected reliance on administrative circulars to override the statute, observing section 119 cannot amend the Act. It noted that if an advance later becomes a bad debt, the taxpayer may claim refund of tax paid on previously accrued interest in accordance with law. en-us Thu, 12 May 1994 00:00:00 +0530 Thu, 23 Oct 2025 12:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5453 SC held that interest accruing on "sticky" advances is taxable as income under the mercantile system; the majority view that such accruals are not merely hypothetical was affirmed and appeals dismissed. The court rejected reliance on administrative circulars to override the statute, observing section 119 cannot amend the Act. It noted that if an advance later becomes a bad debt, the taxpayer may claim refund of tax paid on previously accrued interest in accordance with law. Case-Laws Income Tax Thu, 12 May 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5453