https://www.taxtmi.com/caselaws?id=49332 Income is taxable on accrual only when the recipient acquires a present, enforceable right to receive it. Partnership profits do not accrue day by day merely because they arise from business receipts; they crystallise when the governing contract or accounting arrangement makes them payable. Under an annual accounting covenant, no partner can demand his share before the agreed accounting date. Where a Hindu undivided family was disrupted and a partition deed took effect, the coparcener became the sole owner of the partnership interest, and the family ceased to have a subsisting right in profits arising on settlement of accounts. The share of profits was therefore not includible in the family's taxable income. en-us Tue, 20 Oct 1964 00:00:00 +0530 Thu, 21 Aug 2014 19:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49332 Income is taxable on accrual only when the recipient acquires a present, enforceable right to receive it. Partnership profits do not accrue day by day merely because they arise from business receipts; they crystallise when the governing contract or accounting arrangement makes them payable. Under an annual accounting covenant, no partner can demand his share before the agreed accounting date. Where a Hindu undivided family was disrupted and a partition deed took effect, the coparcener became the sole owner of the partnership interest, and the family ceased to have a subsisting right in profits arising on settlement of accounts. The share of profits was therefore not includible in the family's taxable income. Case-Laws Income Tax Tue, 20 Oct 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49332