https://www.taxtmi.com/caselaws?id=9243 Interest income on loans advanced by an assessee following the mercantile system of accounting is taxable on accrual, not on receipt. Where interest has accrued during the relevant previous years, it forms part of the taxable income for those assessment years even if it was not actually received. The material principle applied is that, under mercantile accounting, income becomes chargeable when the right to receive it accrues. On that basis, the accrued interest was treated as assessable in the relevant assessment years and the issue was resolved against the assessee. en-us Thu, 05 Oct 1972 00:00:00 +0530 Sat, 20 Jun 2009 16:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9243 Interest income on loans advanced by an assessee following the mercantile system of accounting is taxable on accrual, not on receipt. Where interest has accrued during the relevant previous years, it forms part of the taxable income for those assessment years even if it was not actually received. The material principle applied is that, under mercantile accounting, income becomes chargeable when the right to receive it accrues. On that basis, the accrued interest was treated as assessable in the relevant assessment years and the issue was resolved against the assessee. Case-Laws Income Tax Thu, 05 Oct 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9243