https://www.taxtmi.com/caselaws?id=29089 Enhanced electricity charges were treated as accrued income because the assessee had obtained a legally enforceable right to recover them after the Supreme Court upheld that entitlement. Under the mercantile system, accrual depends on the right to receive income, not on actual collection, pending disputes, or book entries. The real income doctrine did not prevent taxation because the amounts remained legally recoverable, were not forfeited, and no statutory obligation to refund existed. The disputed sums were therefore taxable in the relevant assessment years, with the issue decided against the assessee and in favour of the Revenue. en-us Thu, 25 Feb 1982 00:00:00 +0530 Wed, 10 Mar 2010 17:01:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29089 Enhanced electricity charges were treated as accrued income because the assessee had obtained a legally enforceable right to recover them after the Supreme Court upheld that entitlement. Under the mercantile system, accrual depends on the right to receive income, not on actual collection, pending disputes, or book entries. The real income doctrine did not prevent taxation because the amounts remained legally recoverable, were not forfeited, and no statutory obligation to refund existed. The disputed sums were therefore taxable in the relevant assessment years, with the issue decided against the assessee and in favour of the Revenue. Case-Laws Income Tax Thu, 25 Feb 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29089