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2012 (6) TMI 412 - HC - Income TaxTrading receipt - refundable contingency deposit representing sales tax collected in respect of disputed transactions during pendency of appeal before court - Ay 91-92 - Held that:- Irrespective of the labelling, the deposit either as contingency deposit or security deposit, the fact remains that the assessee had collected sales tax towards disputed items and retained part of the amount with it. There are no materials forthcoming from the asseesee to show that the said contingency deposit was never dealt with by the assessee as part of the trading receipt. We confirm the order of the Tribunal in treating the same as Trading receipt - Decided in favor of Revenue Deduction of same for computing total income - assessee contended that amount is refunded to parties - Held that:- On perusal of materials placed it is seen that those amounts relate to the AY 1995-96, hence while treating the receipt as a trading receipt in respect of the AYs under consideration, we hold that on the assessee producing the proof before the AO as regards the refund of the said amount to the parties, it is open to the assessee to make such a claim for deduction of the amount so refunded. Prior period expenses - Held that:- It was not the case that the assessee received the bills after the end of the PY but the assessee omitted to claim the expenditure in the relevant AY which means the liability towards the expenses crystalised in the earlier previous years only. Hence it cannot be allowed in this year, as each AY is an independent and separate assessable unit - Decided in favor of Revenue
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