https://www.taxtmi.com/caselaws?id=35965 Interest on an outstanding loan was treated as not having accrued where the debtor denied liability, a recovery suit had been filed, and the right to post-suit interest depended on judicial discretion under section 34 of the Code of Civil Procedure, 1908. The Tribunal accepted that the original lending arrangement had effectively ended, recovery was doubtful, and no interest had in fact been realised. On that realistic assessment, the mercantile system did not require taxation of a notional amount that had not truly accrued. The interest was therefore not assessable in the relevant year. en-us Tue, 28 Jul 1981 00:00:00 +0530 Thu, 18 Mar 2010 12:04:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35965 Interest on an outstanding loan was treated as not having accrued where the debtor denied liability, a recovery suit had been filed, and the right to post-suit interest depended on judicial discretion under section 34 of the Code of Civil Procedure, 1908. The Tribunal accepted that the original lending arrangement had effectively ended, recovery was doubtful, and no interest had in fact been realised. On that realistic assessment, the mercantile system did not require taxation of a notional amount that had not truly accrued. The interest was therefore not assessable in the relevant year. Case-Laws Income Tax Tue, 28 Jul 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35965