Accrual of managing agency commission is not defeated by a later waiver made after the accounting year ends.

A managing agency commission accrues when the contractual right arises on the year's net profits, even if payment is postponed until audit certification; that delay affects only payment, not accrual. A waiver made after the accounting year does not prevent taxation of the commission, because a post-accrual relinquishment is treated as disposal of income already accrued rather than a failure of accrual. The text also notes that cases involving altered commission arrangements are distinguishable where the agreement itself was varied during the accounting year.

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Issues: Whether the managing agency commission accrued to the assessee despite the alleged waiver made after the close of the accounting year, and whether such waiver prevented taxation of the commission.

Analysis: The managing agency agreement conferred an immediate right to commission on the net profits of the year, though payment was postponed until the auditors certified the balance-sheet. That postponement affected only the time of payment and did not postpone accrual. No resolution, correspondence, or agreement showed any variation of the contractual right during the accounting year. The only material suggesting waiver appeared in the managed company's accounts and related to dates long after the accounting year had ended. A relinquishment made after accrual could only amount to a disposal of income already accrued, not to a failure of accrual. The authorities on altered commission arrangements did not assist the assessee because they turned on a variation of the agreement during the accounting year itself.

Conclusion: The commission had accrued to the assessee and remained taxable notwithstanding the later waiver; the issue was decided against the assessee and in favour of the Revenue.

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