https://www.taxtmi.com/caselaws?id=268879 Income does not accrue merely because a contract was performed or invoices were raised; accrual requires a real and enforceable right to receive, with a realistic probability of recovery. Where the contract was terminated due to persistent non-payment and the counterparty was financially precarious, the larger contractual claim was not credited because collection was uncertain, and later recovery was only a small fraction after prolonged litigation. The demobilisation and winding-up claim also did not accrue because the invoices were raised after termination and were not accepted. Only the amount actually received in a later year was taxable on receipt. en-us Fri, 30 Oct 2015 00:00:00 +0530 Fri, 04 Dec 2015 15:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=268879 Income does not accrue merely because a contract was performed or invoices were raised; accrual requires a real and enforceable right to receive, with a realistic probability of recovery. Where the contract was terminated due to persistent non-payment and the counterparty was financially precarious, the larger contractual claim was not credited because collection was uncertain, and later recovery was only a small fraction after prolonged litigation. The demobilisation and winding-up claim also did not accrue because the invoices were raised after termination and were not accepted. Only the amount actually received in a later year was taxable on receipt. Case-Laws Income Tax Fri, 30 Oct 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=268879