Assessment of State Financial Corporation-Change in method of accounting of interest from mercantile to cash-Regarding

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., Subject: Assessment of State Financial Corporation-Change in method of accounting of interest from mercantile to cash-Regarding The Supreme Court has in its judgment in the case of State Bank of Travancore v. CIT [1986] 158 ITR 102 held that the interest accruing on sticky loans is taxable to income-tax on accrual basis where the assessee follows the mercantile system of accounting. 2. Some S....