https://www.taxtmi.com/caselaws?id=752902 ITAT Delhi ruled in favor of the assessee regarding taxation of interest income on FDRs. The UP Forest Corporation paid only Rs. 77.37 crores principal amount to Uttarakhand Forest Corporation without interest, as no final agreement was reached between state governments regarding interest payment. The tribunal held that taxing unrealized/hypothetical interest income would cause gross injustice when there is no certainty of realization. Following SC precedents, interest income should be taxed on receipt basis or when certainty is established. The additions made by AO were deleted. en-us Fri, 17 May 2024 00:00:00 +0530 Mon, 20 May 2024 10:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752902 ITAT Delhi ruled in favor of the assessee regarding taxation of interest income on FDRs. The UP Forest Corporation paid only Rs. 77.37 crores principal amount to Uttarakhand Forest Corporation without interest, as no final agreement was reached between state governments regarding interest payment. The tribunal held that taxing unrealized/hypothetical interest income would cause gross injustice when there is no certainty of realization. Following SC precedents, interest income should be taxed on receipt basis or when certainty is established. The additions made by AO were deleted. Case-Laws Income Tax Fri, 17 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752902