https://www.taxtmi.com/caselaws?id=23590 The High Court ruled in favor of the assessee, holding that interest income had not accrued as the debtor was unable to pay any interest. The judgment emphasized the importance of considering commercial and business realities in determining income accrual for tax purposes, referencing the mercantile system of accounting. The decision aligned with precedents from other High Courts, highlighting that hypothetical income should not be taxed if it has not materialized in reality. The unanimous decision made no order as to costs. en-us Mon, 05 Jun 1989 00:00:00 +0530 Tue, 22 Dec 2009 13:30:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23590 The High Court ruled in favor of the assessee, holding that interest income had not accrued as the debtor was unable to pay any interest. The judgment emphasized the importance of considering commercial and business realities in determining income accrual for tax purposes, referencing the mercantile system of accounting. The decision aligned with precedents from other High Courts, highlighting that hypothetical income should not be taxed if it has not materialized in reality. The unanimous decision made no order as to costs. Case-Laws Income Tax Mon, 05 Jun 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23590