Interest in Form 26AS Not Taxable on Accrual Under Cash System Without Verification: ITAT Mumbai

Nayana Digant Kapadia Vs ITO (ITAT Mumbai) Interest Reflected in Form 26AS Cannot Be Taxed on Accrual Without Verification When Assessee Follows Cash System The Mumbai ITAT held that interest income merely reflected in Form 26AS cannot automatically be taxed on accrual basis when the assessee follows the cash system of accounting under Section 145 and claims that the income was not actually received during the year. In this case, the assessee had carried forward TDS credit relating to interest shown in Form 26AS from DLK Commercial Pvt. Ltd., contending that the corresponding income was taxabl...