https://www.taxtmi.com/caselaws?id=8916 Profit from compensation payable on termination of a contract accrues only when the amount is finally ascertained, even for an assessee following the mercantile system. Although an interim basis of computation was fixed in February 1945, it was not accepted as final and remained subject to further approval. The contractual liability to pay compensation existed earlier, but the sum payable became definite only on 28 January 1946 when it was finally settled. The profit was therefore assessable in assessment year 1946-47, not 1945-46. en-us Fri, 04 Aug 1972 00:00:00 +0530 Wed, 17 Jun 2009 11:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8916 Profit from compensation payable on termination of a contract accrues only when the amount is finally ascertained, even for an assessee following the mercantile system. Although an interim basis of computation was fixed in February 1945, it was not accepted as final and remained subject to further approval. The contractual liability to pay compensation existed earlier, but the sum payable became definite only on 28 January 1946 when it was finally settled. The profit was therefore assessable in assessment year 1946-47, not 1945-46. Case-Laws Income Tax Fri, 04 Aug 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8916