https://www.taxtmi.com/caselaws?id=18817 The court ruled in favor of the assessee on all issues raised. It held that interest accrued on interest-bearing loans during pending suits for recovery should not be included in the total income during the assessment year. The court also affirmed that under the mercantile system of accounting, interest accrual should not be recognized until the loans were recovered. Additionally, the court directed that a specific interest amount should not be included in the total income of the assessee for a particular assessment year. Lastly, the court determined that the deduction under section 36(1)(viii) of the Income-tax Act should be calculated based on the total income before the deduction itself. en-us Thu, 24 Aug 1995 00:00:00 +0530 Mon, 02 Nov 2009 12:06:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18817 The court ruled in favor of the assessee on all issues raised. It held that interest accrued on interest-bearing loans during pending suits for recovery should not be included in the total income during the assessment year. The court also affirmed that under the mercantile system of accounting, interest accrual should not be recognized until the loans were recovered. Additionally, the court directed that a specific interest amount should not be included in the total income of the assessee for a particular assessment year. Lastly, the court determined that the deduction under section 36(1)(viii) of the Income-tax Act should be calculated based on the total income before the deduction itself. Case-Laws Income Tax Thu, 24 Aug 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18817