https://www.taxtmi.com/caselaws?id=39265 Income is taxable on accrual or arising, and under mercantile accounting it becomes chargeable when the assessee acquires a vested right to receive it. A company resolution created an enforceable liability to pay additional remuneration from the relevant accounting years, and the payer and payee were not in dispute about that liability. A third-party shareholder challenge to the resolution did not defer accrual, because it only questioned the validity of the underlying resolution and did not prevent the right from vesting. The later dismissal of that suit merely confirmed the existing entitlement and did not create a new right; the amount therefore accrued in the earlier accounting years, not only when judgment was pronounced. en-us Wed, 09 Jul 1975 00:00:00 +0530 Wed, 14 Apr 2010 12:28:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39265 Income is taxable on accrual or arising, and under mercantile accounting it becomes chargeable when the assessee acquires a vested right to receive it. A company resolution created an enforceable liability to pay additional remuneration from the relevant accounting years, and the payer and payee were not in dispute about that liability. A third-party shareholder challenge to the resolution did not defer accrual, because it only questioned the validity of the underlying resolution and did not prevent the right from vesting. The later dismissal of that suit merely confirmed the existing entitlement and did not create a new right; the amount therefore accrued in the earlier accounting years, not only when judgment was pronounced. Case-Laws Income Tax Wed, 09 Jul 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39265