https://www.taxtmi.com/caselaws?id=462302 ITAT Mumbai ruled on accrual of interest income from unsecured inter-corporate deposit where debtor company underwent insolvency proceedings. Tribunal held that interest income cannot be deemed accrued when principal recovery is uncertain due to debtor's insolvency and insufficient assets. However, interest income equivalent to TDS amount deducted was held taxable since assessee effectively received that portion through tax credit. Addition sustained only to extent of TDS amount (Rs. 32,85,608) with corresponding TDS credit allowed. Appeal partly allowed. en-us Tue, 21 Mar 2023 00:00:00 +0530 Mon, 09 Jun 2025 18:56:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462302 ITAT Mumbai ruled on accrual of interest income from unsecured inter-corporate deposit where debtor company underwent insolvency proceedings. Tribunal held that interest income cannot be deemed accrued when principal recovery is uncertain due to debtor's insolvency and insufficient assets. However, interest income equivalent to TDS amount deducted was held taxable since assessee effectively received that portion through tax credit. Addition sustained only to extent of TDS amount (Rs. 32,85,608) with corresponding TDS credit allowed. Appeal partly allowed. Case-Laws Income Tax Tue, 21 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462302