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2016 (10) TMI 928 - HC - Income TaxAccrual of income - inclusion of interest income - Held that:- We find that the order of Assessment records that the suit between the parties is with regard to recovery of property. Therefore, there is no suit in respect of the loan given by the Appellant or interest thereon. There is nothing on record to indicate that the borrower had refused to pay either the interest or return the loan. Therefore, on facts, there has been an accrual of interest and following the mercantile system of accounting, the same is real income, liable to tax. In the above view, the fact that all the authorities have come to a finding of fact that income has accrued and nothing was provided by the Appellant before the authorities to establish the impossibility of the recovery of interest from the parties to whom loan was advanced, the orders could not be faulted.
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