CIT v. Pavitra Commercial Ltd. (2018) 402 ITR 66 (Delhi) (HC)

S. 5 : Scope of total income -Real income- Non-Banking financial company — Mercantile system of accounting —Interest on doubtful debts cannot be assessed as income [ S. 145 ]

Dismissing the appeal of the revenue the Court held that ; the Tribunal was justified in holding that under the mercantile system of accounting, interest income did not accrue on the basis of the assessee’s contention that recovery as well as the interests on such deposits were doubtful.( AY. 2005 -06)