Interest income taxable on accrual basis, though the same has become irrecoverable

HIGH COURT OF MADRAS United Nilagiri Tea Estates Co. V/s. Deputy Commissioner of Income-tax, Company Circle-1(1) TC APPEAL NO. 278 OF 2006 JULY 17, 2012 JUDGMENT Mrs. Chitra Venkataraman, J. – The following is the substantial question of law raised in this Tax Case Appeal filed by the assessee, relating to the assessment year 1998-99: “Whether the Tribunal was right in law in holding that the interest income has to be taxed on accrual basis under Section 145 of the Income Tax Act, though the same has become irrecoverable?” 2. It is seen from the facts herein ...