https://www.taxtmi.com/caselaws?id=13603 Under the mercantile system of accounting, chit dividend is recognised as income when it accrues, and the completed contract method does not govern its taxation. The statutory scheme of the Chit Funds Act requires accrual principles to determine when the right to receive dividend arises. Chit discount is not deferred expenditure merely because future instalments remain payable; once the subscriber becomes prized, the liability crystallises and the deduction is taken in full in that year. The third question in the source text is stated to be academic. en-us Fri, 01 Dec 2006 00:00:00 +0530 Sat, 30 May 2009 15:50:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13603 Under the mercantile system of accounting, chit dividend is recognised as income when it accrues, and the completed contract method does not govern its taxation. The statutory scheme of the Chit Funds Act requires accrual principles to determine when the right to receive dividend arises. Chit discount is not deferred expenditure merely because future instalments remain payable; once the subscriber becomes prized, the liability crystallises and the deduction is taken in full in that year. The third question in the source text is stated to be academic. Case-Laws Income Tax Fri, 01 Dec 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13603