https://www.taxtmi.com/caselaws?id=22362 The High Court of Orissa determined that compensation awarded to a partnership firm for contract works should be treated as income for the assessment year in which the right to receive it accrued, not when the contract was executed. The court held that the right to receive compensation materialized only upon the arbitrator's award, not when the claim was made. Therefore, the compensation was deemed to have accrued in the accounting year ending on March 31, 1977, and was rightly taxed in the assessment year 1977-78, following the mercantile system of accounting principles. en-us Fri, 28 Jun 1991 00:00:00 +0530 Wed, 09 Dec 2009 14:25:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22362 The High Court of Orissa determined that compensation awarded to a partnership firm for contract works should be treated as income for the assessment year in which the right to receive it accrued, not when the contract was executed. The court held that the right to receive compensation materialized only upon the arbitrator's award, not when the claim was made. Therefore, the compensation was deemed to have accrued in the accounting year ending on March 31, 1977, and was rightly taxed in the assessment year 1977-78, following the mercantile system of accounting principles. Case-Laws Income Tax Fri, 28 Jun 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22362