https://www.taxtmi.com/caselaws?id=792971 Under the mercantile system of accounting, business income is taxable when the right to receive accrues, not merely when cash is later realised. The assessee's receipts were found to have arisen on credit basis in the relevant year, and accounting records and bank statements supported that the later banking entries represented realisation of already accrued income. On that basis, the subsequent receipt did not shift the year of taxability, and the cash deposit was also explained by supporting evidence. The addition of Rs. 14,00,000 was therefore held unjustified and deleted. en-us Fri, 22 May 2026 00:00:00 +0530 Sat, 06 Jun 2026 08:42:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792971 Under the mercantile system of accounting, business income is taxable when the right to receive accrues, not merely when cash is later realised. The assessee's receipts were found to have arisen on credit basis in the relevant year, and accounting records and bank statements supported that the later banking entries represented realisation of already accrued income. On that basis, the subsequent receipt did not shift the year of taxability, and the cash deposit was also explained by supporting evidence. The addition of Rs. 14,00,000 was therefore held unjustified and deleted. Case-Laws Income Tax Fri, 22 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792971