https://www.taxtmi.com/caselaws?id=6366 The Supreme Court overturned the High Court's decision in a case involving the taxation of interest income under a cash basis accounting system. The dispute arose from a compromise settlement with a sugar mill, with tax authorities considering the interest as taxable income. However, the Court ruled in favor of the assessee Hindu undivided family, emphasizing that income tax liability is based on actual receipt of income, not potential accrual. The judgment established that income not physically received cannot be taxed, setting a precedent for similar cases. en-us Thu, 16 Sep 1971 00:00:00 +0530 Thu, 04 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6366 The Supreme Court overturned the High Court's decision in a case involving the taxation of interest income under a cash basis accounting system. The dispute arose from a compromise settlement with a sugar mill, with tax authorities considering the interest as taxable income. However, the Court ruled in favor of the assessee Hindu undivided family, emphasizing that income tax liability is based on actual receipt of income, not potential accrual. The judgment established that income not physically received cannot be taxed, setting a precedent for similar cases. Case-Laws Income Tax Thu, 16 Sep 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6366