https://www.taxtmi.com/caselaws?id=400425 The High Court upheld the Tribunal's decision, ruling in favor of the assessee regarding the taxation of wheeling charges accrued but not realized under the mercantile system of accounting. It was determined that the income did not accrue as it was hypothetical and not real, aligning with Accounting Standard-9 principles. The Court emphasized the necessity of reasonable certainty of collection for revenue recognition under the mercantile system, dismissing the revenue's appeal and affirming the correct application of accounting principles in determining tax liability. en-us Wed, 21 Oct 2020 00:00:00 +0530 Fri, 06 Nov 2020 10:12:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400425 The High Court upheld the Tribunal's decision, ruling in favor of the assessee regarding the taxation of wheeling charges accrued but not realized under the mercantile system of accounting. It was determined that the income did not accrue as it was hypothetical and not real, aligning with Accounting Standard-9 principles. The Court emphasized the necessity of reasonable certainty of collection for revenue recognition under the mercantile system, dismissing the revenue's appeal and affirming the correct application of accounting principles in determining tax liability. Case-Laws Income Tax Wed, 21 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400425