2007 (8) TMI 633 - ITAT AHMEDABAD

Income - Chargeable as - Held that the income of the assessee was chargeable to tax from the assessment year-in-question and it was for that year when the income of the assessee was to be determined. In the year under consideration, the assessee was following the mercantile system of accounting and interest income was to be assessed on that basis. The income that had not accrued in the year under consideration, but had accrued in the earlier year, would not be assessable merely because it had been received in the assessment year-in-question. Thus, addition of such interest income was unjustified