Assessee filed an application under section 245C for settlement of its cases in respect of assessment year 1997-98. Commissioner, prayed for addition of amount being net amount of interest accrued to 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. On  writ  High Court  held that right to receive interest on Government securities vested in assessee only on due date mentioned in securities and could not be said to have accrued to assessee on any date other than dates stipulated therein  SLP  of the Revenue is dismissed. filed by revenue against said impugned order was to be dismissed.(AY. 1997-98)