https://www.taxtmi.com/caselaws?id=168514 Income tax is chargeable only on real income, and a bona fide surrender of part of an accrued business receipt under the governing commercial arrangement is not taxable merely because the assessee follows the mercantile system. The managing agency agreement itself contemplated a reduction in commission if the managed company's profits were insufficient, and the surrender was made when accounts were being settled on grounds of commercial expediency. On that footing, the surrendered balance did not represent the assessee's real income and could not be included in total income for the relevant assessment year. en-us Fri, 01 Apr 1960 00:00:00 +0530 Tue, 10 Mar 2015 18:40:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168514 Income tax is chargeable only on real income, and a bona fide surrender of part of an accrued business receipt under the governing commercial arrangement is not taxable merely because the assessee follows the mercantile system. The managing agency agreement itself contemplated a reduction in commission if the managed company's profits were insufficient, and the surrender was made when accounts were being settled on grounds of commercial expediency. On that footing, the surrendered balance did not represent the assessee's real income and could not be included in total income for the relevant assessment year. Case-Laws Income Tax Fri, 01 Apr 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168514