Case Law Details
Following issues were decided on the Grounds of appeal made by Assessee and Assessing Officer challenging the orders of CIT(A) in their respective appeals. The issues are identical in one or more assessment year, hence decided on consolidation basis.
1. Taxability of interest accrued on securities but not due.
Investments are made in Govt. securities, debentures, bonds having fixed rate of return. Assessee is maintaining books of account on mercantile system i.e, on accrual basis. Whether Payment of Interest accrues on day to day basis?
Referring to the decision of tribunal, high-court and Supreme Court in various cases sighted, it was held that interest accrues only on specified coupon dates and not on day to day basis. Issue was decided in favor of the assessee.
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