2012 (9) TMI 521

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..... case of Taparia Tools Limited vs. JCIT [2003 (1) TMI 83 - BOMBAY HIGH COURT] refers to matching principle in order to arrive at the real income of the assessee wherein it is held that in this case as concerning with the ascertainment of true profits under the Income-tax Act and in order to ascertain such profits the true accounting principles need to be followed and to apply those principles in t .....

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..... purchase price of the debenture and redemption price after six years and calculated the income on amortization basis. Today, the controversy is very narrow. The question is, whether such interest income should be taxed on accrual basis in the year of allotment of debenture itself or whether it should be taxed on spread-over basis? At this point of time, in our view, it would be futile to ask .....

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