https://www.taxtmi.com/caselaws?id=55317 Interest is taxable on accrual only when the right to receive it is real and substantial, not merely notional. For loans secured by immovable property and backed by decrees, delay in obtaining certified copies did not defeat accrual; the enforceable decretal position controlled, and only the interest actually awarded under the decrees could be treated as accrued, subject to verification. For loans where recovery of principal was doubtful, including film distribution rights security and an unsecured promissory-note loan, the court found the prospect of real recovery too remote and held that interest had not accrued. en-us Sat, 20 Oct 1984 00:00:00 +0530 Thu, 25 Nov 2010 14:33:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55317 Interest is taxable on accrual only when the right to receive it is real and substantial, not merely notional. For loans secured by immovable property and backed by decrees, delay in obtaining certified copies did not defeat accrual; the enforceable decretal position controlled, and only the interest actually awarded under the decrees could be treated as accrued, subject to verification. For loans where recovery of principal was doubtful, including film distribution rights security and an unsecured promissory-note loan, the court found the prospect of real recovery too remote and held that interest had not accrued. Case-Laws Income Tax Sat, 20 Oct 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55317