https://www.taxtmi.com/caselaws?id=49693 Income accrues only when the assessee acquires a vested contractual right to receive it; under an entire managing agency contract with annual remuneration, no commission for a broken period accrues before the year is completed and the contractual conditions precedent are satisfied. The managing agency commission for the broken period was therefore not taxable in the transferor's hands. Section 36 of the Transfer of Property Act, 1882 did not create apportionment contrary to the contract, and section 26(2) of the Indian Income-tax Act, 1922 did not apply because the transferor had not acquired any part of the income before assignment. The transferees were taxable on the whole commission received. en-us Fri, 14 May 1954 00:00:00 +0530 Thu, 03 Jul 2025 16:59:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49693 Income accrues only when the assessee acquires a vested contractual right to receive it; under an entire managing agency contract with annual remuneration, no commission for a broken period accrues before the year is completed and the contractual conditions precedent are satisfied. The managing agency commission for the broken period was therefore not taxable in the transferor's hands. Section 36 of the Transfer of Property Act, 1882 did not create apportionment contrary to the contract, and section 26(2) of the Indian Income-tax Act, 1922 did not apply because the transferor had not acquired any part of the income before assignment. The transferees were taxable on the whole commission received. Case-Laws Income Tax Fri, 14 May 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49693