https://www.taxtmi.com/caselaws?id=188795 A refund of excise duty paid in an earlier accounting year did not accrue as income for that year where the assessee, though keeping mercantile accounts, had no credit entry and no legally enforceable right to receive the refund during that period. Executive directions to departmental officers were treated as insufficient to create a debt or enforceable promise against the Government. The amount was therefore neither a trading debt nor analogous to one, and later remission and repayment could not be related back to the earlier accounting year. Income accrues only when a right to receive it arises, and that condition was not satisfied. en-us Mon, 27 Feb 1956 00:00:00 +0530 Sat, 17 Dec 2016 10:21:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188795 A refund of excise duty paid in an earlier accounting year did not accrue as income for that year where the assessee, though keeping mercantile accounts, had no credit entry and no legally enforceable right to receive the refund during that period. Executive directions to departmental officers were treated as insufficient to create a debt or enforceable promise against the Government. The amount was therefore neither a trading debt nor analogous to one, and later remission and repayment could not be related back to the earlier accounting year. Income accrues only when a right to receive it arises, and that condition was not satisfied. Case-Laws Income Tax Mon, 27 Feb 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188795