https://www.taxtmi.com/caselaws?id=58848 Interest is taxable as accrued income only when the contract and surrounding facts create a real and enforceable right to receive it. Where the deposit clause provided interest only at half-yearly intervals and no term covered post-termination interest, no accrual was found for the period after termination but before suit, especially given the uncertainty created by the distributor's counterclaim and the non-strict mercantile treatment of the entries. Interest pending suit was also not treated as accrued income, since pendente lite interest depends on the court's discretion and not on an automatic contractual entitlement. The additions for assumed accrued interest were therefore deleted. en-us Fri, 13 Jul 1984 00:00:00 +0530 Sun, 06 Feb 2011 03:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58848 Interest is taxable as accrued income only when the contract and surrounding facts create a real and enforceable right to receive it. Where the deposit clause provided interest only at half-yearly intervals and no term covered post-termination interest, no accrual was found for the period after termination but before suit, especially given the uncertainty created by the distributor's counterclaim and the non-strict mercantile treatment of the entries. Interest pending suit was also not treated as accrued income, since pendente lite interest depends on the court's discretion and not on an automatic contractual entitlement. The additions for assumed accrued interest were therefore deleted. Case-Laws Income Tax Fri, 13 Jul 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58848