https://www.taxtmi.com/caselaws?id=292645 Where admitted facts show that sewai was credited in the books before it became payable, the dispute turns on the legal effect of the entries and whether they represented income. The High Court held that mere book entries are not conclusive for computing business income, and that section 13 of the Income-tax Act, 1922 does not permit taxation of amounts that are not true income. Income must have been received or accrued in a legal sense, not be a mere debt or unrealised expectancy. A question of law therefore arose on the reference sought, and the Commissioner was bound to refer it. en-us Mon, 27 Apr 1925 00:00:00 +0530 Sat, 02 Jan 2021 16:23:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=292645 Where admitted facts show that sewai was credited in the books before it became payable, the dispute turns on the legal effect of the entries and whether they represented income. The High Court held that mere book entries are not conclusive for computing business income, and that section 13 of the Income-tax Act, 1922 does not permit taxation of amounts that are not true income. Income must have been received or accrued in a legal sense, not be a mere debt or unrealised expectancy. A question of law therefore arose on the reference sought, and the Commissioner was bound to refer it. Case-Laws Income Tax Mon, 27 Apr 1925 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=292645