Non-issue of bills does not stop accrual of income under mercantile system of accounting

M/s. Optum Health & Technology (India) Pvt. Ltd. Vs ITO (ITAT Bangalore)  The Assessee follows mercantile system of accounting and therefore under the Act, the AO is empowered and bound to compute income in accordance with the mercantile system of accounting. There is no dispute that under mercantile system of accounting debit of value of services to the tune of Rs. 1,50,84,240 was not because of non-accrual of income but only because bills were not raised on the customers for value of services which had already accrued. The fact that bills were not raised does not stop accrual of income ...