During year, assessee supplied steel furniture to various Government offices and received consideration for same on which  some of Government offices deducted TDS before making payment to assessee on account of supply of steel furniture . AO treated the receipts as part of sales and not contract receipts. As the   assessee failed to produce books of account and supporting evidences to show that amount received by her was part of sales and not contract receipt  Tribunal held that the AO  was justified in treating amount in question as contract receipt. Interest accrued is assessable as income on accrual basis when the assessee is following mercantile system of accounting. Interest income accrued to assessee was duly recognized by debtor. As the assessee has not produced books of account and supporting vouchers for verification of expenditure booked by her in P&L account-Disallowance of business  expenditure is held to be justified. When loan taken by assessee was found to be unexplained and was added to assessee’s income  as cash credits, claim of expenditure of interest paid on such loan being consequential to claim of loan which  is not allowable as deduction.  (AY.2009-10)