https://www.taxtmi.com/caselaws?id=277303 Income credited in the capital account of an assessee's head office in the books of foreign branches may be taxable in British India where the assessee keeps mercantile accounts and consistently treats those credits as head-office profits. Section 4 distinguishes income accruing, arising, or received in British India from foreign income received or brought into British India, and the explanation shows that mere book entries in British India do not by themselves constitute receipt. However, under Section 13, income must be computed by the method of accounting regularly employed, and a mercantile assessee cannot selectively disown its own accounting treatment when the amounts have long been returned as profits. en-us Tue, 13 Sep 1938 00:00:00 +0530 Fri, 30 Nov 2018 18:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277303 Income credited in the capital account of an assessee's head office in the books of foreign branches may be taxable in British India where the assessee keeps mercantile accounts and consistently treats those credits as head-office profits. Section 4 distinguishes income accruing, arising, or received in British India from foreign income received or brought into British India, and the explanation shows that mere book entries in British India do not by themselves constitute receipt. However, under Section 13, income must be computed by the method of accounting regularly employed, and a mercantile assessee cannot selectively disown its own accounting treatment when the amounts have long been returned as profits. Case-Laws Income Tax Tue, 13 Sep 1938 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277303