Chargeability of interest income to tax when same is only technically accrued

RELEVANT PARAGRAPHS: 8. We have carefully deliberated on the rival contentions raised by the learned AR and DR. The controversy here revolves around charge ability of interest income to the tax which even though technically accrued as per the mercantile-system of accounting being followed by the assessee, but the same was not accounted for as income in view of the peculiar facts and circumstances of the case wherein there was uncertainty regarding ultimate collection of interest. There is no dispute to the well settled legal proposition that income-tax act levies charge of income tax on the to...