https://www.taxtmi.com/caselaws?id=274034 The Kerala High Court ruled that interest received by the assessee from contractors on loans advanced to them was taxable income, not a capital receipt reducing the cost of the plant. The Court held that income tax liability is determined at the point of income accrual, emphasizing that income from borrowed capital used for earning income is taxable under the Income-tax Act. The Court referenced relevant sections of the Act and previous case law to support its decision, ultimately ruling in favor of the revenue and against the assessee. en-us Thu, 23 Sep 1999 00:00:00 +0530 Wed, 25 Jul 2018 13:25:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=274034 The Kerala High Court ruled that interest received by the assessee from contractors on loans advanced to them was taxable income, not a capital receipt reducing the cost of the plant. The Court held that income tax liability is determined at the point of income accrual, emphasizing that income from borrowed capital used for earning income is taxable under the Income-tax Act. The Court referenced relevant sections of the Act and previous case law to support its decision, ultimately ruling in favor of the revenue and against the assessee. Case-Laws Income Tax Thu, 23 Sep 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=274034