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2003 (12) TMI 46 - HC - Income TaxInterest on deferred payment credited to the account of "Deferred accrued interest" – Accrued/real income - main activity of the assessee consists of supply of handloom inputs to various user-agencies throughout the country at a reasonable rate - There was no stipulation or agreement between the assessee and the user-agencies to pay any interest - The assessee unilaterally, of its own accord, quantified the total amount of interest, which it thought to be receivable to it in those two years at the end of the year, credited it to the account of "Deferred accrued interest" and as stated above, debited it to the account of "Deferred accrued interest receivable". The assessee did not debit any interest to the account of any of the user-agencies nor credited it to any account to treat it as accrued income. Hence, the aforesaid amounts do not represent either the accrued income or real income of the assessee.
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