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2006 (8) TMI 137 - HC - Income TaxAccrual of income - bank interest on fixed deposits representing the particular amount received against the bank guarantee furnished by the assessee from the U. P. State Electricity Board - It is well-settled that where an assessee follows the mercantile system, the interest accrues in that year without waiting for the actual receipt - for claiming the liability as a deduction in a particular year, the liability should be an ascertained one and should not be dependent on any contingency in future, therefore, Tribunal has rightly held that the entire amount of interest, which had accrued to the applicant on the FDR is liable to be taxed – Whether, Tribunal was justified in law in holding that the income from Nainital property and from furniture and fixtures therein as leased out to the State Bank of India for use of the training centre was income from house property and not income from business or income from other sources, as alleged by the assessee? – this question is answered in affirmative, i.e., in favour of the assessee
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