https://www.taxtmi.com/caselaws?id=22034 Interest on doubtful loans kept in a suspense account did not accrue during the relevant previous year where recovery suits were pending and pendente lite interest had not been determined by the court. Although the assessee followed the mercantile system, the right to receive such interest was contingent under section 34 CPC, because interest from the date of suit to decree depends on judicial discretion and is not an enforceable claim until awarded. Applying the real income principle, the court treated the amount as not having accrued year by year. The interest was therefore not includible in the assessee's total income. en-us Thu, 14 Mar 1991 00:00:00 +0530 Sat, 05 Dec 2009 16:08:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22034 Interest on doubtful loans kept in a suspense account did not accrue during the relevant previous year where recovery suits were pending and pendente lite interest had not been determined by the court. Although the assessee followed the mercantile system, the right to receive such interest was contingent under section 34 CPC, because interest from the date of suit to decree depends on judicial discretion and is not an enforceable claim until awarded. Applying the real income principle, the court treated the amount as not having accrued year by year. The interest was therefore not includible in the assessee's total income. Case-Laws Income Tax Thu, 14 Mar 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22034