https://www.taxtmi.com/caselaws?id=21583 Under the mercantile system, interest becomes taxable when the right to receive it accrues, even if it is not entered in the books or is taken to an interest suspense account. Relief was confined to sticky loans where suits had been filed and interest had ceased to accrue; for the remaining loans, no suit was filed, the contractual right to interest continued, and the assessee's non-charging of interest did not prevent accrual of income. The Tribunal's view that tax was payable on the accrued interest on those remaining sticky loans was upheld, and the reference application failed. en-us Thu, 19 Sep 1991 00:00:00 +0530 Wed, 25 Nov 2009 15:49:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21583 Under the mercantile system, interest becomes taxable when the right to receive it accrues, even if it is not entered in the books or is taken to an interest suspense account. Relief was confined to sticky loans where suits had been filed and interest had ceased to accrue; for the remaining loans, no suit was filed, the contractual right to interest continued, and the assessee's non-charging of interest did not prevent accrual of income. The Tribunal's view that tax was payable on the accrued interest on those remaining sticky loans was upheld, and the reference application failed. Case-Laws Income Tax Thu, 19 Sep 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21583