https://www.taxtmi.com/caselaws?id=17671 Interest on loans covered by pending recovery suits was not treated as having accrued because the right to receive it remained contingent on the outcome of the litigation and the court's discretion. The assessee's decision not to charge the interest to the debtors' accounts was consistent with the absence of real accrual. Applying the real income principle, the court held that notional or hypothetical income cannot be taxed where recovery is uncertain and the matter is sub judice. The disputed interest was therefore not includible in total income despite the mercantile system of accounting. en-us Thu, 01 Aug 1996 00:00:00 +0530 Thu, 24 Sep 2009 11:03:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17671 Interest on loans covered by pending recovery suits was not treated as having accrued because the right to receive it remained contingent on the outcome of the litigation and the court's discretion. The assessee's decision not to charge the interest to the debtors' accounts was consistent with the absence of real accrual. Applying the real income principle, the court held that notional or hypothetical income cannot be taxed where recovery is uncertain and the matter is sub judice. The disputed interest was therefore not includible in total income despite the mercantile system of accounting. Case-Laws Income Tax Thu, 01 Aug 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17671