https://www.taxtmi.com/caselaws?id=272533 Under the mercantile system of accounting, income is taxable when it accrues, not when it is later received. Excess sale proceeds from coffee produced and delivered in the 1953-54 season under the statutory Coffee Board scheme were attributable to that earlier accounting period, because the underlying right to the balance had already arisen then. As the charging provision under the Madras Plantations Agricultural Income-tax Act, 1955 did not apply to agricultural income of any year before 1 April 1954, the later receipt could not be assessed in 1956-57. The amount was therefore not taxable for that assessment year. en-us Sat, 12 Aug 1961 00:00:00 +0530 Mon, 07 May 2018 16:36:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272533 Under the mercantile system of accounting, income is taxable when it accrues, not when it is later received. Excess sale proceeds from coffee produced and delivered in the 1953-54 season under the statutory Coffee Board scheme were attributable to that earlier accounting period, because the underlying right to the balance had already arisen then. As the charging provision under the Madras Plantations Agricultural Income-tax Act, 1955 did not apply to agricultural income of any year before 1 April 1954, the later receipt could not be assessed in 1956-57. The amount was therefore not taxable for that assessment year. Case-Laws Income Tax Sat, 12 Aug 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272533