https://www.taxtmi.com/caselaws?id=202862 Under the cash system of accounting, income is taxable in the year of actual receipt, not on accrual. Interest received on delayed payment of compensation was therefore assessable in the relevant assessment year even though the compensation dispute had not been finally settled. Earlier accrual-based decisions on enhanced compensation were distinguished because they applied mercantile accounting, where the right to receive must have crystallized. The interest received during the year was held taxable in that year, and the issue was answered in favour of the Revenue. en-us Wed, 01 Sep 2010 00:00:00 +0530 Fri, 26 Jun 2026 11:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=202862 Under the cash system of accounting, income is taxable in the year of actual receipt, not on accrual. Interest received on delayed payment of compensation was therefore assessable in the relevant assessment year even though the compensation dispute had not been finally settled. Earlier accrual-based decisions on enhanced compensation were distinguished because they applied mercantile accounting, where the right to receive must have crystallized. The interest received during the year was held taxable in that year, and the issue was answered in favour of the Revenue. Case-Laws Income Tax Wed, 01 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=202862