It has been held by the Hon’ble Appellate Tribunal that it is a settled law that passing of entries in the books of account is not conclusive to determine the income under the provisions of the law. Whether an amount is to be considered as income or not is to be determined on the basis of the Income-tax law and not on the basis of the entries made in the books of account. No tax can be charged on an amount which is not earned. Since the necessary entries made in the books of account of the assessee represented only hypothetical or notional income although it followed the mercantile system of accounting, the amounts as brought to tax by the AO did not represent the income of the assessee. (AY. 2016-17)