https://www.taxtmi.com/caselaws?id=6924 Income accrues only when the assessee acquires an enforceable right to receive it and a corresponding debt arises; a mere assurance or expected reimbursement is insufficient. On these facts, a 1943 letter from the Iron and Steel Controller was treated only as an assurance and not as a binding contract creating a debt during the war years. The receipt therefore could not be related back to the years of supply merely because it arose from commercial dealings. The amount was taxable in assessment year 1957-58, when the claim was quantified and payment was made, rather than on accrual in the earlier war years. en-us Thu, 19 Jan 1967 00:00:00 +0530 Sat, 07 Feb 2009 10:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6924 Income accrues only when the assessee acquires an enforceable right to receive it and a corresponding debt arises; a mere assurance or expected reimbursement is insufficient. On these facts, a 1943 letter from the Iron and Steel Controller was treated only as an assurance and not as a binding contract creating a debt during the war years. The receipt therefore could not be related back to the years of supply merely because it arose from commercial dealings. The amount was taxable in assessment year 1957-58, when the claim was quantified and payment was made, rather than on accrual in the earlier war years. Case-Laws Income Tax Thu, 19 Jan 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6924