https://www.taxtmi.com/caselaws?id=288057 Income accrues only when the assessee acquires a legally enforceable right to receive it, and not merely because a contract exists or the amount is later quantified. On the facts, the compensation of Rs. 2-6-0 per maund was not part of the original procurement agreement but arose only when the Government agreed in May 1955 to release the stocks on the assessee's private account against compensation. As the assessee had no vested right in 1954 and no pre-existing debt or contractual entitlement, the sum of Rs. 44,000 accrued in May 1955 and was assessable in assessment year 1956-57, not 1955-56. en-us Tue, 03 Mar 1964 00:00:00 +0530 Sat, 16 May 2020 10:20:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=288057 Income accrues only when the assessee acquires a legally enforceable right to receive it, and not merely because a contract exists or the amount is later quantified. On the facts, the compensation of Rs. 2-6-0 per maund was not part of the original procurement agreement but arose only when the Government agreed in May 1955 to release the stocks on the assessee's private account against compensation. As the assessee had no vested right in 1954 and no pre-existing debt or contractual entitlement, the sum of Rs. 44,000 accrued in May 1955 and was assessable in assessment year 1956-57, not 1955-56. Case-Laws Income Tax Tue, 03 Mar 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=288057