https://www.taxtmi.com/caselaws?id=23237 The High Court of Calcutta ruled in favor of the assessee, holding that the accrued interest on advances made to a company was not taxable under the Income-tax Act for the assessment years 1971-72 and 1972-73. The Court emphasized that for such interest to be assessed, the assessee's accounting method must also be on an accrual basis, which was not the case here. The Revenue's argument that even on a cash basis the assessee is liable for tax on accrued interest was rejected, and the Court directed the Revenue to bear the costs of the reference. Judge Bhagabati Prasad Banerjee concurred with the judgment. en-us Fri, 03 Mar 1989 00:00:00 +0530 Thu, 17 Dec 2009 17:07:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23237 The High Court of Calcutta ruled in favor of the assessee, holding that the accrued interest on advances made to a company was not taxable under the Income-tax Act for the assessment years 1971-72 and 1972-73. The Court emphasized that for such interest to be assessed, the assessee's accounting method must also be on an accrual basis, which was not the case here. The Revenue's argument that even on a cash basis the assessee is liable for tax on accrued interest was rejected, and the Court directed the Revenue to bear the costs of the reference. Judge Bhagabati Prasad Banerjee concurred with the judgment. Case-Laws Income Tax Fri, 03 Mar 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23237