https://www.taxtmi.com/caselaws?id=353147 The ITAT allowed the appeals by the assessee, ruling in their favor on both issues. The ITAT found that the interest income had accrued but not been realized, following the rule of real income theory. The addition for interest on the loan was disallowed as the interest was overdue, as evidenced by the TDS certificate, and not recognized in the appellant's books as it was not received. The ITAT held that the AO failed to properly examine the validity of the reasons for income escapement under section 147 of the Income Tax Act, 1961. en-us Tue, 26 Dec 2017 00:00:00 +0530 Thu, 28 Dec 2017 08:05:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=353147 The ITAT allowed the appeals by the assessee, ruling in their favor on both issues. The ITAT found that the interest income had accrued but not been realized, following the rule of real income theory. The addition for interest on the loan was disallowed as the interest was overdue, as evidenced by the TDS certificate, and not recognized in the appellant's books as it was not received. The ITAT held that the AO failed to properly examine the validity of the reasons for income escapement under section 147 of the Income Tax Act, 1961. Case-Laws Income Tax Tue, 26 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=353147