1998 (2) TMI 22 - HC - Income Tax

Summary

The High Court of Madras ruled that accrued interest on hire purchase of machinery and penal interest must be included in the total income of the assessee for the assessment year 1978-79, as they became due during the relevant previous year. The court rejected the plea that the assessee was following the cash system of accounting, affirming that the mercantile system was used. The decision was made in favor of the revenue authorities, with no costs awarded.