https://www.taxtmi.com/caselaws?id=14732 The court held that the assessee, a government-owned company, had consistently followed the mercantile system of accounting. Penal interest, akin to regular interest, was deemed accrued income regardless of its disclosure in the profit and loss account. The Tribunal's exclusion of penal interest from taxable income was overturned, ruling in favor of the Revenue and against the assessee. The court emphasized the importance of maintaining consistency in accounting methods and treating all income, including accrued interest, as taxable. en-us Mon, 23 Nov 1998 00:00:00 +0530 Sat, 18 Jul 2009 12:53:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14732 The court held that the assessee, a government-owned company, had consistently followed the mercantile system of accounting. Penal interest, akin to regular interest, was deemed accrued income regardless of its disclosure in the profit and loss account. The Tribunal's exclusion of penal interest from taxable income was overturned, ruling in favor of the Revenue and against the assessee. The court emphasized the importance of maintaining consistency in accounting methods and treating all income, including accrued interest, as taxable. Case-Laws Income Tax Mon, 23 Nov 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14732