https://www.taxtmi.com/caselaws?id=31550 The High Court dismissed Revenue's appeals challenging the ITAT order on a Section 154 application regarding taxability of interest income under the Mercantile System. The court upheld the assessee's position that tax should be based on actual income realization, not hypothetical income, as per Section 143(1)(a). Relying on established legal principles and previous judgments, the court rejected the Revenue's arguments for accrual basis taxation. The court affirmed the ITAT's decision, emphasizing the debatable nature of the tax liability issue and the inapplicability of Section 143(1)(a) in this context. Additionally, the court declined to address the merits of the assessee's writ petition challenging a notice under Section 148 for escaped income assessment. Ultimately, both Revenue's appeals and the assessee's petition were dismissed. en-us Wed, 23 Jan 2008 00:00:00 +0530 Sat, 22 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=31550 The High Court dismissed Revenue's appeals challenging the ITAT order on a Section 154 application regarding taxability of interest income under the Mercantile System. The court upheld the assessee's position that tax should be based on actual income realization, not hypothetical income, as per Section 143(1)(a). Relying on established legal principles and previous judgments, the court rejected the Revenue's arguments for accrual basis taxation. The court affirmed the ITAT's decision, emphasizing the debatable nature of the tax liability issue and the inapplicability of Section 143(1)(a) in this context. Additionally, the court declined to address the merits of the assessee's writ petition challenging a notice under Section 148 for escaped income assessment. Ultimately, both Revenue's appeals and the assessee's petition were dismissed. Case-Laws Income Tax Wed, 23 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=31550