https://www.taxtmi.com/caselaws?id=298356 The ITAT dismissed the Revenue's appeal, upholding the deletion of the addition of accrued interest on seed money loans. The ITAT concluded that interest on such loans, classified as sticky advances with uncertainty in recovery, could not be treated as accrued income under the mercantile system of accounting. Relying on judicial precedents, the ITAT emphasized taxing only real income where the right to receive income has accrued. The decision aligned with the non-taxability of interest on non-performing assets and legislative amendments addressing specific circumstances, affirming the principles of real income recognition. en-us Thu, 24 Jun 2021 00:00:00 +0530 Thu, 28 Oct 2021 08:38:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=298356 The ITAT dismissed the Revenue's appeal, upholding the deletion of the addition of accrued interest on seed money loans. The ITAT concluded that interest on such loans, classified as sticky advances with uncertainty in recovery, could not be treated as accrued income under the mercantile system of accounting. Relying on judicial precedents, the ITAT emphasized taxing only real income where the right to receive income has accrued. The decision aligned with the non-taxability of interest on non-performing assets and legislative amendments addressing specific circumstances, affirming the principles of real income recognition. Case-Laws Income Tax Thu, 24 Jun 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=298356