https://www.taxtmi.com/caselaws?id=284389 Income actually received on behalf of an assessee during the relevant previous year is assessable in that year where the assessee does not establish that its accounts were kept on a mercantile basis. Although lease income may accrue when the lessee's profits are ascertained at year-end, subsequent audit or formal passing of accounts does not defer accrual. On the facts discussed, the amounts were received on the assessee's behalf in the relevant years and were not reflected in its own accounts, so the taxable event was receipt and the amounts were taxable under the Income-tax Act in those years. en-us Fri, 23 Jun 1961 00:00:00 +0530 Fri, 15 Nov 2019 16:10:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=284389 Income actually received on behalf of an assessee during the relevant previous year is assessable in that year where the assessee does not establish that its accounts were kept on a mercantile basis. Although lease income may accrue when the lessee's profits are ascertained at year-end, subsequent audit or formal passing of accounts does not defer accrual. On the facts discussed, the amounts were received on the assessee's behalf in the relevant years and were not reflected in its own accounts, so the taxable event was receipt and the amounts were taxable under the Income-tax Act in those years. Case-Laws Income Tax Fri, 23 Jun 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=284389