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2003 (12) TMI 45 - HC - Income TaxInterest earned on short-term deposits of share application money – Accrual of income - It is only after the allotment process is completed and all moneys payable to those to whom moneys are refundable are refunded together with interest wherever interest becomes payable, the balance remaining from and out of the interest earned on the application money can be regarded as belonging to the company. Therefore, the allotment process in this case was not completed in the AY 1992-93, but was completed only in the subsequent assessment year. It is only after that allotment process was completed in all respects, interest that had accrued on the application money kept in a separate bank account was capable of being regarded as belonging to the assessee – Thus, Tribunal was right in law in holding that the interest earned did not accrue to the assessee during the AY 1992-93
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