Income Accrual Requires Legal Right to Receive, Mere Earning Doesn't Satisfy Criteria for Income Accrual.

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....Accrual of income - accrue or arise - Although, earning of income is a necessary pre-requisite for accrual of income, mere earning of income without right to receive the same does not suffice. A person may be said to have “earned” his income in the sense that he has contributed to its production by rendering service and the parenthood of the income can be traced to him but in order that the income that may be said to have “accrued” to him an additional element is necessary that he must have created a debt in his favour. The phrase “accrue or arise” has been the subject matter of judicial debate from inception which we now propose to deal with some of them. - HC....