Dismissing the appeal of the revenue the Court held that  the manner in which the assessee has reflected his income by following mercantile system of accounting cannot be found fault with as the amounts attributable to the period post 31st March is income which has not accrued during the previous year relevant to subject assessment year. This is so as it is not due during the period for which the revenue seeks to bring it to tax. The appellant has not been able to show that the method followed by the respondent does not correctly bring out the income chargeable to the tax. The obligation in respect of the license fees billed for the entire calendar year is yet to be discharged at the end of the previous year related to the subject assessment year and would be due only in the next previous year related to the next assessment year. (Referred CIT  v. Nagri Mills Co Ltd (1981) 131 ITR 257(Guj) (HC) and CIT v. Excel Industries Ltd (2013) 358 ITR 295(SC) ) (AY. 2004-05, 2006-07 , 2008-09)