https://www.taxtmi.com/caselaws?id=166455 Under the mercantile system, deferred guarantee commission accrues only when an enforceable right to receive it arises. Where the commission is collected at the outset but remains refundable for the unexpired period if the guarantee ends early, the amount relatable to that unexpired period does not crystallise as income on execution of the guarantee agreement. The assessable income is therefore limited to the proportion attributable to the relevant accounting year, with the balance carried forward until the guarantee runs its course. en-us Fri, 07 May 1993 00:00:00 +0530 Wed, 01 Jul 2026 18:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166455 Under the mercantile system, deferred guarantee commission accrues only when an enforceable right to receive it arises. Where the commission is collected at the outset but remains refundable for the unexpired period if the guarantee ends early, the amount relatable to that unexpired period does not crystallise as income on execution of the guarantee agreement. The assessable income is therefore limited to the proportion attributable to the relevant accounting year, with the balance carried forward until the guarantee runs its course. Case-Laws Income Tax Fri, 07 May 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166455