Meaning of “Accruing”

Case Name : Assam roller flour mills Vs. CIT

Citation : [1996] 88 taxman 153 (raj.)

Court :Rajasthan high court

Section : 37(1)

Meaning : In the mercantile system of accountancy, income is charged to tax and liability is allowed as deduction on the basis of ‘accrual’ or ‘arisal’. The two words ‘accruing’ or ‘arising’ are used in contradistinction to the words ‘receive’ or ‘pay’.

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