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2014 (4) TMI 32 - HC - Income TaxTaxability of income – Scope of section 2(24) of the Act – Interest income - Whether the income of interest is virtually the income fall within the meaning of Section 2(24) of the Act – Held that:- The decision in Commissioner of Income Tax Vs. M/s Excel Industries Ltd.[2013 (10) TMI 324 - SUPREME COURT] followed - income accrues when it becomes due but it must also be accompanied by a corresponding liability of the other party to pay the amount - Only then can it be said that for the purposes of taxability that the income is not hypothetical and it has really accrued to the assessee - the assessee had not actually received any amount of interest income but it actually accrues to the appellant within the provisions of the Act - it makes no difference whether income was actually received by the assessee in the relevant year or not. The Corporation is virtually a state owned corporation having 99.9% shares and as such a State Government Undertaking which has been constituted by the State Government to promote the cinematic activities and exhibition of popular cinemas throughout the State - in absence of any notification or instructions issued by CBDT under Section 119 of the Act, the income shall become due for the relevant assessment year and as such the same accrued to the assessee - This income was based on contractual corresponding obligation and liability to pay the interest accrued on unpaid amount of sale consideration by the purchaser to the appellant - The rate of interest is fixed - The realization/recovery of income of interest is not time barred in the relevant assessment year - The State Government is not so defunct that it may knee down before the purchasers of the property under Deferred Payment Plan – there is no substance in the appeal and no substantial question of law arises for consideration – Decided against Assessee.
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