https://www.taxtmi.com/caselaws?id=762603 The ITAT Mumbai partly allowed the Revenue's appeal regarding addition of interest accrued and receivable by the assessee and TDS credit. While the tribunal upheld CIT(A)'s deletion of the interest addition applying real income theory due to uncertainty and irrecoverability of the principal amount, it ruled that TDS of Rs. 36 lakhs deducted by the debtor and reflected in Form 26AS must be treated as income under section 198. The tribunal held that when TDS cannot be adjusted against tax payable due to the uncertain nature of underlying income, it becomes deemed income under "income from other sources." The assessee cannot claim TDS credit while refusing to show corresponding interest income, preventing selective application of accounting methods. en-us Fri, 27 Sep 2024 00:00:00 +0530 Tue, 03 Dec 2024 18:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762603 The ITAT Mumbai partly allowed the Revenue's appeal regarding addition of interest accrued and receivable by the assessee and TDS credit. While the tribunal upheld CIT(A)'s deletion of the interest addition applying real income theory due to uncertainty and irrecoverability of the principal amount, it ruled that TDS of Rs. 36 lakhs deducted by the debtor and reflected in Form 26AS must be treated as income under section 198. The tribunal held that when TDS cannot be adjusted against tax payable due to the uncertain nature of underlying income, it becomes deemed income under "income from other sources." The assessee cannot claim TDS credit while refusing to show corresponding interest income, preventing selective application of accounting methods. Case-Laws Income Tax Fri, 27 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762603