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2015 (5) TMI 791 - HC - Income TaxDeemed accrual of interest - Tribunal held that the interest had accrued to the assessee and hence was assessable to tax in the hands of the Appellant - Held that:- The judgment Shoorji Vallabhdas & Co. (1962 (3) TMI 6 - SUPREME Court) has been recently follows in CIT V. Excel Industries Ltd. [2013 (10) TMI 324 - SUPREME COURT] where it was reiterated that income tax is levied on real income and not hypothetical income. Therefore, entries inspired by realistic prospects of their realisation cannot per se constitute the basis of a valid levy. This view finds support in the Division Bench ruling of this Court in CIT V. Goyal M G Gases (2007 (7) TMI 241 - DELHI HIGH COURT). Furthermore, this Court is of the opinion that having once accepted the assessee’s explanation, with respect to the income not in fact accruing and therefore not liable to be taxed for the previous period 1998-99, the Revenue could not have in the absence of any compelling reason, treated an identical subject matter for succeeding years as it did. In view of the foregoing discussions the impugned order of the ITAT is set aside. - Decided in favour of assesse.
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