https://www.taxtmi.com/caselaws?id=765675 ITAT Chennai held that income accrues only when assessee acquires right to receive it, not merely through book entries. Following SC precedents in Godhra Electricity Co. Ltd. and Bokaro Steel Ltd., tribunal ruled that hypothetical income cannot be taxed under mercantile accounting system. Where enhanced electricity charges were disputed by consumers through court suits and ultimately not realized, no real income accrued to assessee-company. CIT(A)'s deletion of addition was upheld as unilateral book entries without debtor acceptance do not constitute accrued income. en-us Wed, 09 Oct 2024 00:00:00 +0530 Tue, 20 May 2025 12:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765675 ITAT Chennai held that income accrues only when assessee acquires right to receive it, not merely through book entries. Following SC precedents in Godhra Electricity Co. Ltd. and Bokaro Steel Ltd., tribunal ruled that hypothetical income cannot be taxed under mercantile accounting system. Where enhanced electricity charges were disputed by consumers through court suits and ultimately not realized, no real income accrued to assessee-company. CIT(A)'s deletion of addition was upheld as unilateral book entries without debtor acceptance do not constitute accrued income. Case-Laws Income Tax Wed, 09 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765675