https://www.taxtmi.com/caselaws?id=176942 Under the mercantile system of accounting income accrues when liability to pay is accepted; therefore bills accepted by the Government constituted accrued income. An unadjudicated assertion of a counterclaim or a mere right to claim damages does not constitute an enforceable claim capable of defeating or setting off the admitted liability absent adjudication (for example by arbitration as provided in the contract). The operative effect is that the specified sum accrued to the assessee in the relevant previous year and is taxable in that year. en-us Thu, 19 Jul 1962 00:00:00 +0530 Thu, 31 Dec 2015 13:24:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=176942 Under the mercantile system of accounting income accrues when liability to pay is accepted; therefore bills accepted by the Government constituted accrued income. An unadjudicated assertion of a counterclaim or a mere right to claim damages does not constitute an enforceable claim capable of defeating or setting off the admitted liability absent adjudication (for example by arbitration as provided in the contract). The operative effect is that the specified sum accrued to the assessee in the relevant previous year and is taxable in that year. Case-Laws Income Tax Thu, 19 Jul 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=176942