https://www.taxtmi.com/caselaws?id=3086 Amounts received under interim court directions, subject to possible restitution, do not accrue as taxable income when the recipient has no vested or unconditional right to retain them. Because the receipt remained contingent on the outcome of the underlying dispute and could be refunded if the opposing party succeeded, the income test of accrual in praesenti was not satisfied. The operative principle is that compensation or similar receipts become taxable only when the right to receive them is final and unconditional; on that basis, the addition was deleted. en-us Tue, 19 Feb 2008 00:00:00 +0530 Wed, 30 Jul 2008 10:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3086 Amounts received under interim court directions, subject to possible restitution, do not accrue as taxable income when the recipient has no vested or unconditional right to retain them. Because the receipt remained contingent on the outcome of the underlying dispute and could be refunded if the opposing party succeeded, the income test of accrual in praesenti was not satisfied. The operative principle is that compensation or similar receipts become taxable only when the right to receive them is final and unconditional; on that basis, the addition was deleted. Case-Laws Income Tax Tue, 19 Feb 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3086