https://www.taxtmi.com/caselaws?id=188798 Income credited in an assessee's mercantile books is taxable on accrual basis even if not actually received in cash. The assessee had entered interest on renewal of a promissory note in its books and added it to principal, showing treatment as business income. On that footing, the court applied the mercantile system consistently and held that the assessee could not adopt cash basis for this single item while keeping mercantile treatment for the rest. The disputed interest was therefore rightly included in taxable income, and the question was answered in the affirmative. en-us Wed, 20 Jun 1934 00:00:00 +0530 Sat, 17 Dec 2016 10:32:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188798 Income credited in an assessee's mercantile books is taxable on accrual basis even if not actually received in cash. The assessee had entered interest on renewal of a promissory note in its books and added it to principal, showing treatment as business income. On that footing, the court applied the mercantile system consistently and held that the assessee could not adopt cash basis for this single item while keeping mercantile treatment for the rest. The disputed interest was therefore rightly included in taxable income, and the question was answered in the affirmative. Case-Laws Income Tax Wed, 20 Jun 1934 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188798