https://www.taxtmi.com/caselaws?id=10710 Interest booked in suspense accounts was examined for accrual under the mercantile system of accounting. For interest in the recalled account, the governing CBDT circular on doubtful debts, reinforced by UCO Bank, required taxation only on actual recovery, not on a mere book entry. For interest from the date of suit until decree, the right to further interest depended on the court's discretion under section 34 of the Code of Civil Procedure, so the claim remained inchoate until decree and did not accrue year by year. On that basis, neither amount was taxable as accrued income for the relevant assessment year. en-us Mon, 04 Jul 2005 00:00:00 +0530 Wed, 22 Jul 2009 10:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10710 Interest booked in suspense accounts was examined for accrual under the mercantile system of accounting. For interest in the recalled account, the governing CBDT circular on doubtful debts, reinforced by UCO Bank, required taxation only on actual recovery, not on a mere book entry. For interest from the date of suit until decree, the right to further interest depended on the court's discretion under section 34 of the Code of Civil Procedure, so the claim remained inchoate until decree and did not accrue year by year. On that basis, neither amount was taxable as accrued income for the relevant assessment year. Case-Laws Income Tax Mon, 04 Jul 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10710