BABULAL NAROTFAMDAS AND ORS. vs COMMISSIONER OF INCOME-TAX, BOMBAY

The Supreme Court held that the right to receive income arises when it is acquired by the assessee, as established in E.D. Sassoon & Co. Ltd. v. C.I.T. The Court ruled that the income of Rs.15,000 accrued to the appellant-assessee in each relevant year despite non-payment due to pending litigation. The Court dismissed the appeal, affirming that the income was taxable in the years it accrued, not when the High Court validated the Resolution.