https://www.taxtmi.com/caselaws?id=118943 Management fee receivable under a scheme was waived by board decision during the relevant year on grounds of commercial expediency after poor scheme performance and a fall in net asset value below repurchase price. Applying the real income principle, the fee was not treated as taxable on accrual basis because it was neither effectively earned in substance nor pursued through a bona fide business decision. A merely notional addition could not stand where the contractual fee was consciously forgone before year-end. The deletion of the addition was therefore justified. en-us Thu, 21 Jul 2005 00:00:00 +0530 Fri, 06 Jul 2012 18:04:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=118943 Management fee receivable under a scheme was waived by board decision during the relevant year on grounds of commercial expediency after poor scheme performance and a fall in net asset value below repurchase price. Applying the real income principle, the fee was not treated as taxable on accrual basis because it was neither effectively earned in substance nor pursued through a bona fide business decision. A merely notional addition could not stand where the contractual fee was consciously forgone before year-end. The deletion of the addition was therefore justified. Case-Laws Income Tax Thu, 21 Jul 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=118943