https://www.taxtmi.com/caselaws?id=35796 Interest income on deposits did not accrue under the mercantile system where the governing statutory bar prevented institution of recovery proceedings. Accrual for income-tax purposes required a present, legally enforceable right to receive the amount, not a merely notional entitlement. Because the assessee could not legally enforce recovery during the relevant assessment years, the interest was not taxable on accrual. Authorities involving postponed or later relinquished income were distinguished because, in those cases, the right to receive had already crystallised and enforcement was not barred. en-us Wed, 24 Sep 1980 00:00:00 +0530 Tue, 16 Mar 2010 16:55:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35796 Interest income on deposits did not accrue under the mercantile system where the governing statutory bar prevented institution of recovery proceedings. Accrual for income-tax purposes required a present, legally enforceable right to receive the amount, not a merely notional entitlement. Because the assessee could not legally enforce recovery during the relevant assessment years, the interest was not taxable on accrual. Authorities involving postponed or later relinquished income were distinguished because, in those cases, the right to receive had already crystallised and enforcement was not barred. Case-Laws Income Tax Wed, 24 Sep 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35796