https://www.taxtmi.com/caselaws?id=6623 Accrued interest under the mercantile system is taxable on accrual, even if the assessee does not debit it in the books for that year. An assessee cannot selectively depart from a regularly followed accounting method for one transaction while the underlying right to receive the income remains alive. If income later proves irrecoverable, the proper remedy lies in the statutory bad-debt mechanism, not in excluding accrued income from assessment. The debtor's financial condition is not material to the immediate question of accrual. On these principles, the interest was includible in total income. en-us Tue, 21 Sep 1965 00:00:00 +0530 Tue, 27 Jan 2009 16:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6623 Accrued interest under the mercantile system is taxable on accrual, even if the assessee does not debit it in the books for that year. An assessee cannot selectively depart from a regularly followed accounting method for one transaction while the underlying right to receive the income remains alive. If income later proves irrecoverable, the proper remedy lies in the statutory bad-debt mechanism, not in excluding accrued income from assessment. The debtor's financial condition is not material to the immediate question of accrual. On these principles, the interest was includible in total income. Case-Laws Income Tax Tue, 21 Sep 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6623