https://www.taxtmi.com/caselaws?id=462300 ITAT Lucknow dismissed revenue's appeal regarding disputed interest income accrual. The tribunal held that where a borrower company's resolution made interest collection contingent on its income tax assessment outcome, such uncertain income cannot be taxed under real income theory. The arrangement was not deemed a colourable device as the assessee legitimately agreed to reduced interest rates temporarily, with potential increase based on borrower's tax deduction eligibility. Following Southern Technologies Ltd precedent, the disputed interest remained non-taxable due to uncertainty of collection. en-us Fri, 14 Aug 2015 00:00:00 +0530 Mon, 09 Jun 2025 13:50:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462300 ITAT Lucknow dismissed revenue's appeal regarding disputed interest income accrual. The tribunal held that where a borrower company's resolution made interest collection contingent on its income tax assessment outcome, such uncertain income cannot be taxed under real income theory. The arrangement was not deemed a colourable device as the assessee legitimately agreed to reduced interest rates temporarily, with potential increase based on borrower's tax deduction eligibility. Following Southern Technologies Ltd precedent, the disputed interest remained non-taxable due to uncertainty of collection. Case-Laws Income Tax Fri, 14 Aug 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462300