https://www.taxtmi.com/caselaws?id=183081 Under the mercantile system, compensation is taxable only when the corresponding right to receive it accrues. A closure order by itself did not create any enforceable entitlement to compensation, and the earliest possible accrual arose only when the Government agreed to pay, which was communicated after the close of the previous year relevant to assessment year 1945-46. As that date also fell outside the relevant year, the compensation could not be assessed in assessment year 1945-46. The reference was answered in the negative, in favour of the assessee. en-us Mon, 02 May 1960 00:00:00 +0530 Fri, 27 May 2016 15:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183081 Under the mercantile system, compensation is taxable only when the corresponding right to receive it accrues. A closure order by itself did not create any enforceable entitlement to compensation, and the earliest possible accrual arose only when the Government agreed to pay, which was communicated after the close of the previous year relevant to assessment year 1945-46. As that date also fell outside the relevant year, the compensation could not be assessed in assessment year 1945-46. The reference was answered in the negative, in favour of the assessee. Case-Laws Income Tax Mon, 02 May 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183081