https://www.taxtmi.com/caselaws?id=470327 Under the mercantile system, interest income does not accrue merely because it is contractually due if the facts establish that no real income has arisen. Borrowers' correspondence expressing inability to pay interest may demonstrate the absence of actual accrual. Accordingly, notional interest should not be computed where recoverability is unsupported and the income is unreal. en-us Sun, 10 Aug 2008 00:00:00 +0530 Thu, 23 Jul 2026 17:19:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470327 Under the mercantile system, interest income does not accrue merely because it is contractually due if the facts establish that no real income has arisen. Borrowers' correspondence expressing inability to pay interest may demonstrate the absence of actual accrual. Accordingly, notional interest should not be computed where recoverability is unsupported and the income is unreal. Case-Laws Income Tax Sun, 10 Aug 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470327