https://www.taxtmi.com/caselaws?id=39430 The High Court held that under the mercantile system of accounting, income should be recognized when the right to receive it arises, not upon actual receipt. Anticipated losses and contingent liabilities are not allowable. The Court found that the firm's failure to provide verifiable accounts justified the rejection of claimed expenditure. While income from the railways was considered accrued, the Tribunal's deletion of income from contract work was deemed incorrect. The Court ruled in favor of the assessee, answering the referred question in the negative and allowing the reference with no costs incurred. en-us Tue, 11 Sep 1973 00:00:00 +0530 Fri, 16 Apr 2010 13:27:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39430 The High Court held that under the mercantile system of accounting, income should be recognized when the right to receive it arises, not upon actual receipt. Anticipated losses and contingent liabilities are not allowable. The Court found that the firm's failure to provide verifiable accounts justified the rejection of claimed expenditure. While income from the railways was considered accrued, the Tribunal's deletion of income from contract work was deemed incorrect. The Court ruled in favor of the assessee, answering the referred question in the negative and allowing the reference with no costs incurred. Case-Laws Income Tax Tue, 11 Sep 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39430