https://www.taxtmi.com/caselaws?id=351846 The Tribunal allowed the appeal, setting aside the CIT(A)'s order and deleting the addition of Rs. 1,05,30,822 in interest income. It emphasized that since the recovery of principal amounts was doubtful in both cases of intercorporate deposits and loan to an individual, interest income could not be recognized. The decision considered the financial distress of the borrowers, Accounting Standards, and principles of real income recognition for tax purposes, ultimately concluding that the interest income did not accrue due to uncertainty in recovering the principal amounts. en-us Mon, 27 Nov 2017 00:00:00 +0530 Sun, 03 Dec 2017 07:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=351846 The Tribunal allowed the appeal, setting aside the CIT(A)'s order and deleting the addition of Rs. 1,05,30,822 in interest income. It emphasized that since the recovery of principal amounts was doubtful in both cases of intercorporate deposits and loan to an individual, interest income could not be recognized. The decision considered the financial distress of the borrowers, Accounting Standards, and principles of real income recognition for tax purposes, ultimately concluding that the interest income did not accrue due to uncertainty in recovering the principal amounts. Case-Laws Income Tax Mon, 27 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=351846