https://www.taxtmi.com/caselaws?id=71505 Income accrues only when the assessee acquires an enforceable right to receive it; where a technical know-how agreement was mutually rescinded ab initio, the project failed and the consideration wholly failed, no real income arose and mere book entries could not create taxability. On that footing, the revision under section 263 was treated as unsustainable. Separately, a fixed consideration for limited use of technical know-how, with restrictions on disclosure and a defined term, was characterised as royalty rather than an outright sale; the instalment mode did not alter its lump sum nature, so the concessional 20% rate applied if taxable. en-us Tue, 18 Jul 1995 00:00:00 +0530 Mon, 25 Apr 2011 13:15:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71505 Income accrues only when the assessee acquires an enforceable right to receive it; where a technical know-how agreement was mutually rescinded ab initio, the project failed and the consideration wholly failed, no real income arose and mere book entries could not create taxability. On that footing, the revision under section 263 was treated as unsustainable. Separately, a fixed consideration for limited use of technical know-how, with restrictions on disclosure and a defined term, was characterised as royalty rather than an outright sale; the instalment mode did not alter its lump sum nature, so the concessional 20% rate applied if taxable. Case-Laws Income Tax Tue, 18 Jul 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71505