https://www.taxtmi.com/caselaws?id=20443 Interest accrued under the mercantile system was taxable in the relevant assessment year because the assessee had an express yearly arrangement for charging interest on outstanding advances and the amount had become due during the accounting year. The later correspondence did not establish any prior agreement dispensing with interest, so accrual was complete in the relevant previous year. A subsequent waiver could not alter the taxability of income already accrued, because the real income doctrine operates only to determine whether accrual occurred and does not nullify an accrual already completed in that year. en-us Tue, 28 Sep 1993 00:00:00 +0530 Sat, 26 Mar 2022 11:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20443 Interest accrued under the mercantile system was taxable in the relevant assessment year because the assessee had an express yearly arrangement for charging interest on outstanding advances and the amount had become due during the accounting year. The later correspondence did not establish any prior agreement dispensing with interest, so accrual was complete in the relevant previous year. A subsequent waiver could not alter the taxability of income already accrued, because the real income doctrine operates only to determine whether accrual occurred and does not nullify an accrual already completed in that year. Case-Laws Income Tax Tue, 28 Sep 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20443