https://www.taxtmi.com/caselaws?id=6256 Compensation payable on termination of a managing agency accrued when the agency was terminated, because the agreement fixed the amount as liquidated damages for the unexpired term and no further contingency affected the right to receive it. Under the mercantile system, income accrues when the right to receive arises, so later civil adjudication did not shift the accrual date. Section 10(5A) applied to compensation due to or received by a managing agent, but the accrued compensation was not taxable in the relevant assessment year merely because it was actually received after the provision was inserted. The interest component was treated separately and was taxable. en-us Wed, 11 Aug 1971 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6256 Compensation payable on termination of a managing agency accrued when the agency was terminated, because the agreement fixed the amount as liquidated damages for the unexpired term and no further contingency affected the right to receive it. Under the mercantile system, income accrues when the right to receive arises, so later civil adjudication did not shift the accrual date. Section 10(5A) applied to compensation due to or received by a managing agent, but the accrued compensation was not taxable in the relevant assessment year merely because it was actually received after the provision was inserted. The interest component was treated separately and was taxable. Case-Laws Income Tax Wed, 11 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6256