https://www.taxtmi.com/caselaws?id=49282 Compensation or insurance money received for destruction of buildings, machinery or plant is deemed to be profits of the previous year only when actually received under the fourth proviso to section 10(2)(vii) of the Indian Income-tax Act, 1922. The statutory deeming fiction cannot be expanded by mercantile accounting concepts of accrual or receivability, because assessable income under section 10 is governed by the Act's specific charging and allowance provisions, not by section 13 alone. Accordingly, such compensation is taxable only on actual receipt, not when it merely becomes receivable. en-us Tue, 26 Oct 1965 00:00:00 +0530 Tue, 07 Jun 2016 14:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49282 Compensation or insurance money received for destruction of buildings, machinery or plant is deemed to be profits of the previous year only when actually received under the fourth proviso to section 10(2)(vii) of the Indian Income-tax Act, 1922. The statutory deeming fiction cannot be expanded by mercantile accounting concepts of accrual or receivability, because assessable income under section 10 is governed by the Act's specific charging and allowance provisions, not by section 13 alone. Accordingly, such compensation is taxable only on actual receipt, not when it merely becomes receivable. Case-Laws Income Tax Tue, 26 Oct 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49282