https://www.taxtmi.com/caselaws?id=8703 Under the mercantile system, interest on outstanding loans is taxable when it has legally accrued, even if not actually received. The principle of real income may exclude tax only where accrual itself has failed or the interest has been effectively given up; mere non-receipt, difficulty in recovery, or bona fide reluctance to charge interest is not enough. On the facts stated, the accrued interest remained includible in taxable income and the additions for the relevant years were sustained. en-us Fri, 29 Sep 1972 00:00:00 +0530 Tue, 13 Jan 2026 16:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8703 Under the mercantile system, interest on outstanding loans is taxable when it has legally accrued, even if not actually received. The principle of real income may exclude tax only where accrual itself has failed or the interest has been effectively given up; mere non-receipt, difficulty in recovery, or bona fide reluctance to charge interest is not enough. On the facts stated, the accrued interest remained includible in taxable income and the additions for the relevant years were sustained. Case-Laws Income Tax Fri, 29 Sep 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8703