COMMISSIONER OF INCOME-TAX, MADRAS vs K. R. M. T. T. THIAGARAJA CHETTY & CO.

The Supreme Court held that under the Indian Income-tax Act, 1922, Section 4(1)(b), commission accrued to the assessee when credited in the accounts, regardless of subsequent disputes or transfers to a suspense account. The Court clarified that the quantification of profits is not a condition precedent to the accrual of income, thus affirming the liability to be taxed on the commission amount. The judgment of the Madras High Court was upheld, confirming the assessment for the years 1942-43 and 1943-44.