https://www.taxtmi.com/caselaws?id=329186 Under mercantile accounting, income may generally accrue before receipt, but that principle did not help the assessee because it failed to show the escalation claim as a receivable or outstanding balance in its books. The Court distinguished cases on accrued expenditure and liability, and held that those authorities could not be mechanically applied to income recognition on these facts. As the escalation amount was credited only when sanctioned and received from the railways, the Tribunal correctly treated it as taxable in the year of credit and receipt. en-us Tue, 07 Jun 2016 00:00:00 +0530 Fri, 24 Jun 2016 14:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=329186 Under mercantile accounting, income may generally accrue before receipt, but that principle did not help the assessee because it failed to show the escalation claim as a receivable or outstanding balance in its books. The Court distinguished cases on accrued expenditure and liability, and held that those authorities could not be mechanically applied to income recognition on these facts. As the escalation amount was credited only when sanctioned and received from the railways, the Tribunal correctly treated it as taxable in the year of credit and receipt. Case-Laws Income Tax Tue, 07 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=329186