https://www.taxtmi.com/caselaws?id=276301 For computation of business income, only income that actually accrues under the governing arrangement is taxable; mere book entries or notional gross receipts cannot enlarge the taxable base. Where the assessee was contractually entitled, for the initial years, only to the reduced commission remaining after provision for compensation to outgoing agents, the larger amount shown in the books did not reflect the true legal character of the transaction. The compensation sums therefore never formed part of the assessee's income under the charging provision governing business profits, and were held not includible in total income. en-us Mon, 28 Sep 1964 00:00:00 +0530 Mon, 05 Nov 2018 16:40:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276301 For computation of business income, only income that actually accrues under the governing arrangement is taxable; mere book entries or notional gross receipts cannot enlarge the taxable base. Where the assessee was contractually entitled, for the initial years, only to the reduced commission remaining after provision for compensation to outgoing agents, the larger amount shown in the books did not reflect the true legal character of the transaction. The compensation sums therefore never formed part of the assessee's income under the charging provision governing business profits, and were held not includible in total income. Case-Laws Income Tax Mon, 28 Sep 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276301