COMMR.OF INCOME TAX,NEW DELHI vs M/S REALEST BUILDERS & SERVICES LTD.

The Supreme Court addressed the issue of when income accrues to an assessee under the Income Tax Act, specifically under Section 145. The Court held that income from the sale of property does not accrue until the execution of the conveyance deed, rejecting the Department's argument that it accrued at the time of the tripartite agreement. The Court found no reason to interfere with the High Court's dismissal of the Department's appeal, emphasizing the need for the Department to demonstrate any underestimation of profits due to the accounting method used by the assessee.