https://www.taxtmi.com/caselaws?id=5027 Encumbered Estates Bonds received in complete discharge of a debt were treated as receipt of income when received, because under the cash basis the decisive factor is receipt of money or money's worth and the bonds were a convertible substitute security replacing the original liability. The taxable amount was limited to the real income embedded in the transaction, measured by the excess of the bonds' market value over the principal due, rather than any notional face-value difference. The receipt therefore triggered taxation in the year of receipt, but only on a market-value basis. en-us Thu, 06 Apr 1967 00:00:00 +0530 Thu, 10 Dec 2015 17:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5027 Encumbered Estates Bonds received in complete discharge of a debt were treated as receipt of income when received, because under the cash basis the decisive factor is receipt of money or money's worth and the bonds were a convertible substitute security replacing the original liability. The taxable amount was limited to the real income embedded in the transaction, measured by the excess of the bonds' market value over the principal due, rather than any notional face-value difference. The receipt therefore triggered taxation in the year of receipt, but only on a market-value basis. Case-Laws Income Tax Thu, 06 Apr 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5027