https://www.taxtmi.com/caselaws?id=35906 Interest on outstanding loans remains taxable where no valid modification of the lending arrangement is proved, and book entries alone are insufficient to show that accrual stopped. The fact that the debtor company held controlling shares in the assessee did not extinguish the debtor-creditor relationship between two separate corporate entities, and there was no basis for apportioning the debt by reference to shareholding. On those facts, the entire interest of Rs. 6,000 was assessable as income in the assessee-company's hands. en-us Mon, 12 Nov 1979 00:00:00 +0530 Wed, 17 Mar 2010 17:31:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35906 Interest on outstanding loans remains taxable where no valid modification of the lending arrangement is proved, and book entries alone are insufficient to show that accrual stopped. The fact that the debtor company held controlling shares in the assessee did not extinguish the debtor-creditor relationship between two separate corporate entities, and there was no basis for apportioning the debt by reference to shareholding. On those facts, the entire interest of Rs. 6,000 was assessable as income in the assessee-company's hands. Case-Laws Income Tax Mon, 12 Nov 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35906