Income which an assessee could have, but has not earned cannot be made taxable as income accrued

Brief of the case: Assessee is a state electricity board governed by govt. laws and conditions. The appeals were pertains to AYs 2001-02 to 2002-03. ITAT decided various issues related to claim of revenue subsidies, interest on borrowed capitals and prior period expenses.  Facts of the case:  Being a government undertaking assessee was governed by Specific Acts and the orders of the State Government. The Electricity Supply Act, 1948 prescribed that net revenue of the assessee should not be less than 3% and electricity tariff to be collected from the customers was to be adjusted accordingly...