https://www.taxtmi.com/caselaws?id=5315 Under the mercantile system, income accrues when the assessee acquires a vested right to receive it, not when it is actually paid. A company resolution created the right to additional remuneration at the agreed rate, and the pending shareholder litigation affected only payment timing, not the existence of entitlement. The remuneration was therefore earned year by year in the relevant accounting periods, and a third-party challenge did not postpone accrual where there was no dispute between the company and the assessee. The principle stated is that deferred payment does not defer accrual if the right to receive has already arisen from a valid source. en-us Fri, 14 Dec 1990 00:00:00 +0530 Tue, 23 Jun 2026 11:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5315 Under the mercantile system, income accrues when the assessee acquires a vested right to receive it, not when it is actually paid. A company resolution created the right to additional remuneration at the agreed rate, and the pending shareholder litigation affected only payment timing, not the existence of entitlement. The remuneration was therefore earned year by year in the relevant accounting periods, and a third-party challenge did not postpone accrual where there was no dispute between the company and the assessee. The principle stated is that deferred payment does not defer accrual if the right to receive has already arisen from a valid source. Case-Laws Income Tax Fri, 14 Dec 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5315