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2014 (10) TMI 663 - HC - Income TaxAccrual of income - Acquisition of right to receive balance consideration - Whether the assessee has acquired the right to receive the balance of 10% of the consideration for the electrical conductor supplied to its customer – Held that:- The Tribunal has rightly dealt with the matter extensively and relying upon Seth Pushalal Mansinghka (P.) Ltd., v. Commissioner of Income-tax [1967 (5) TMI 1 - SUPREME Court] - an assessee can be said to have received the income, only when corresponding right has accrued to him - an income accrues to an assessee not only when it is due to him, but also it is accompanied by a corresponding obligation on the part of the other party, to pay it - though an assessee may claim a particular amount as of right, it cannot be treated as his income, unless the corresponding obligation is either accepted by, or fastened upon, the other party; in accordance with law - assessee was no doubt entitled to receive 10% of the consideration for the goods supplied by it - the corresponding obligation of the recipient of the goods would have arisen only when a certificate, to the effect that the quality conform to the specifications - That event did not take place, by the time the order of assessment was passed – the order of the Tribunal is upheld – Decided against revenue.
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