https://www.taxtmi.com/caselaws?id=25809 Compensation under a termination compromise decree remained contingent on the sales organisation's annual turnover, so it was not a lump sum immediately due on termination. The decree only altered the rate and minimum guarantee; it did not change the basic character of the liability. Applying the mercantile system, the right to receive income arose year by year when sales were effected, and accrual did not occur on the date of the termination agreement or decree. The compensation was therefore assessable in the relevant assessment year under section 10(5A), and the question was answered against the assessee. en-us Wed, 18 Dec 1985 00:00:00 +0530 Mon, 01 Feb 2010 10:42:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25809 Compensation under a termination compromise decree remained contingent on the sales organisation's annual turnover, so it was not a lump sum immediately due on termination. The decree only altered the rate and minimum guarantee; it did not change the basic character of the liability. Applying the mercantile system, the right to receive income arose year by year when sales were effected, and accrual did not occur on the date of the termination agreement or decree. The compensation was therefore assessable in the relevant assessment year under section 10(5A), and the question was answered against the assessee. Case-Laws Income Tax Wed, 18 Dec 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25809