https://www.taxtmi.com/caselaws?id=15332 Under the mercantile system of accounting, accrued interest on hire purchase machinery loans and penal interest are taxable in the relevant previous year when the income accrues, even if the payment due dates fall after the year-end. The court treated the accounting method as ative and declined remand because the assessee's mercantile basis was clear and its own earlier case governed the issue. The accrued interest and penal interest were therefore correctly included in total income for the assessment year, and the issue was answered against the assessee. en-us Fri, 27 Feb 1998 00:00:00 +0530 Tue, 04 Aug 2009 18:19:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15332 Under the mercantile system of accounting, accrued interest on hire purchase machinery loans and penal interest are taxable in the relevant previous year when the income accrues, even if the payment due dates fall after the year-end. The court treated the accounting method as ative and declined remand because the assessee's mercantile basis was clear and its own earlier case governed the issue. The accrued interest and penal interest were therefore correctly included in total income for the assessment year, and the issue was answered against the assessee. Case-Laws Income Tax Fri, 27 Feb 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15332