Assessee filed an application under section 245C for settlement of its cases. Commissioner, prayed for addition of amount being net amount of interest accrued be brought to tax. Settlement Commission agreed with Commissioner’s view and held that income having accrued and corresponding expenditure having been reckoned on mercantile basis, interest income would be taxed on accrual basis for both years under consideration. High Court held that right to receive interest on Government securities vested in assessee only on due date mentioned in securities and consequently, interest accrued on securities only on due dates and could not be said to have accrued to assessee on any date other than dates stipulated therein, therefore, conclusion arrived at by Settlement Commission under this head was not in confirmity with provisions of law and the  order to this extent was  set aside.  SLP of Revenue is dismissed on account of delay of 364 days and also on merits. (AY. 1997-98)