https://www.taxtmi.com/caselaws?id=276681 Interest merely accrued to a money-lending firm during the year of account was not taxable as income or business profits under the Income-tax Act, 1918, unless it was received in cash, adjusted in the accounts, or otherwise brought under the assessee's control by constructive receipt. The court examined the ordinary meaning of income, the statutory scheme for taxing business profits, and authorities on accrual and receipt, and accepted that mere creation of a debt does not by itself amount to taxable receipt. On that basis, accrued but unrealised interest was held not taxable on that footing alone, and the reference was answered in favour of the assessee. en-us Wed, 06 Oct 1920 00:00:00 +0530 Thu, 15 Nov 2018 17:58:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276681 Interest merely accrued to a money-lending firm during the year of account was not taxable as income or business profits under the Income-tax Act, 1918, unless it was received in cash, adjusted in the accounts, or otherwise brought under the assessee's control by constructive receipt. The court examined the ordinary meaning of income, the statutory scheme for taxing business profits, and authorities on accrual and receipt, and accepted that mere creation of a debt does not by itself amount to taxable receipt. On that basis, accrued but unrealised interest was held not taxable on that footing alone, and the reference was answered in favour of the assessee. Case-Laws Income Tax Wed, 06 Oct 1920 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276681