https://www.taxtmi.com/caselaws?id=20558 The High Court held that interest on advance payments under the mercantile accounting system is taxable in the year it accrues, irrespective of actual payment or entitlement. The court ruled against the assessee, affirming that interest becomes taxable upon accrual, not upon credit by the Excise Department. This decision clarified the tax treatment of interest in such scenarios, emphasizing the importance of accrual in determining tax liability. en-us Tue, 22 Jun 1993 00:00:00 +0530 Sat, 14 Nov 2009 16:45:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20558 The High Court held that interest on advance payments under the mercantile accounting system is taxable in the year it accrues, irrespective of actual payment or entitlement. The court ruled against the assessee, affirming that interest becomes taxable upon accrual, not upon credit by the Excise Department. This decision clarified the tax treatment of interest in such scenarios, emphasizing the importance of accrual in determining tax liability. Case-Laws Income Tax Tue, 22 Jun 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20558