https://www.taxtmi.com/caselaws?id=193016 Interest on sticky advances remained taxable where the assessee, following the mercantile system, had accrued the interest during the accounting period but omitted it from the profit and loss account pursuant to a Reserve Bank direction. The Income-tax Act required income to be computed according to the method of accounting regularly employed, and a Reserve Bank instruction could not displace that statutory mandate or prevent taxation of accrued income. An omission or incorrect accounting entry could not defeat tax liability when accrual had already taken place under the regular method. The interest was therefore brought to tax. en-us Mon, 10 Aug 1964 00:00:00 +0530 Sat, 08 Jul 2017 12:13:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193016 Interest on sticky advances remained taxable where the assessee, following the mercantile system, had accrued the interest during the accounting period but omitted it from the profit and loss account pursuant to a Reserve Bank direction. The Income-tax Act required income to be computed according to the method of accounting regularly employed, and a Reserve Bank instruction could not displace that statutory mandate or prevent taxation of accrued income. An omission or incorrect accounting entry could not defeat tax liability when accrual had already taken place under the regular method. The interest was therefore brought to tax. Case-Laws Income Tax Mon, 10 Aug 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193016