https://www.taxtmi.com/caselaws?id=56160 Under the mercantile system, service charges for delayed or non-payment of instalments accrued when the contractual right to receive them arose during the relevant accounting year. A later settlement or waiver after year-end did not destroy that accrual for tax purposes, and doubtful recoverability by itself was not enough to defer taxation where the right to receive had already vested. The service charges were therefore taxable on accrual basis, and the contrary contention that they were chargeable only on receipt basis was rejected. en-us Fri, 05 Sep 1997 00:00:00 +0530 Thu, 02 Dec 2010 10:03:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56160 Under the mercantile system, service charges for delayed or non-payment of instalments accrued when the contractual right to receive them arose during the relevant accounting year. A later settlement or waiver after year-end did not destroy that accrual for tax purposes, and doubtful recoverability by itself was not enough to defer taxation where the right to receive had already vested. The service charges were therefore taxable on accrual basis, and the contrary contention that they were chargeable only on receipt basis was rejected. Case-Laws Income Tax Fri, 05 Sep 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56160