https://www.taxtmi.com/caselaws?id=58323 Interest on fixed deposits under a reinvestment plan was treated as revenue income, not capital gains, because the deposit terms showed annual accrual and reinvestment at the assessee's instance. The tax effect followed the accrual principle under sections 4 and 5 of the Income-tax Act: the income was taxable when accrued, subject to any permissible assessment on receipt basis. The assessee's alternative claim was accepted in light of CBDT circulars and Supreme Court support, so only the interest that accrued during the relevant previous year was liable to tax for that assessment year. en-us Thu, 18 Mar 1993 00:00:00 +0530 Sat, 18 Dec 2010 14:23:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58323 Interest on fixed deposits under a reinvestment plan was treated as revenue income, not capital gains, because the deposit terms showed annual accrual and reinvestment at the assessee's instance. The tax effect followed the accrual principle under sections 4 and 5 of the Income-tax Act: the income was taxable when accrued, subject to any permissible assessment on receipt basis. The assessee's alternative claim was accepted in light of CBDT circulars and Supreme Court support, so only the interest that accrued during the relevant previous year was liable to tax for that assessment year. Case-Laws Income Tax Thu, 18 Mar 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58323