https://www.taxtmi.com/caselaws?id=116996 Under the Chit Funds Act scheme, a foreman's commission or remuneration accrues at each draw, because the right to receive it arises then under the chit agreement and statutory structure; it cannot be deferred to the completion of the chit by shifting from the mercantile system to the completion method, so that accounting change was rejected. Generators run on petrol or diesel were also found outside the depreciation category reserved for wind energy or other renewable energy devices, so the higher depreciation claim was disallowed. The note thus confirms that income recognition follows the point of accrual under the chit framework and that depreciation depends on the specific asset classification applicable under the rules. en-us Tue, 27 May 2003 00:00:00 +0530 Fri, 20 May 2016 16:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=116996 Under the Chit Funds Act scheme, a foreman's commission or remuneration accrues at each draw, because the right to receive it arises then under the chit agreement and statutory structure; it cannot be deferred to the completion of the chit by shifting from the mercantile system to the completion method, so that accounting change was rejected. Generators run on petrol or diesel were also found outside the depreciation category reserved for wind energy or other renewable energy devices, so the higher depreciation claim was disallowed. The note thus confirms that income recognition follows the point of accrual under the chit framework and that depreciation depends on the specific asset classification applicable under the rules. Case-Laws Income Tax Tue, 27 May 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=116996