https://www.taxtmi.com/caselaws?id=168753 Enhanced contractual receipts arising only after the close of the chargeable accounting period could not be treated as profits of that period for excess profits tax. On a mercantile basis, income accrues when the right to receive it arises, and the Excess Profits Tax Act required profits to be computed on that accrual basis for the relevant period. Because the contractual terms did not confer an enforceable right to the enhanced amount during the chargeable accounting period, and the enhancement was made later by military authorities, the receipt could not be related back to the earlier period. The amount was therefore not assessable as profits of the chargeable accounting period ending 31 March 1944. en-us Tue, 06 Apr 1965 00:00:00 +0530 Wed, 25 Mar 2015 14:59:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168753 Enhanced contractual receipts arising only after the close of the chargeable accounting period could not be treated as profits of that period for excess profits tax. On a mercantile basis, income accrues when the right to receive it arises, and the Excess Profits Tax Act required profits to be computed on that accrual basis for the relevant period. Because the contractual terms did not confer an enforceable right to the enhanced amount during the chargeable accounting period, and the enhancement was made later by military authorities, the receipt could not be related back to the earlier period. The amount was therefore not assessable as profits of the chargeable accounting period ending 31 March 1944. Case-Laws Income Tax Tue, 06 Apr 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168753