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2015 (7) TMI 1085 - HC - Income TaxDeferred receipt v/s accrued receipt - nature of receipt - assessee is following mercantile system of accounting - Held that:- In the case in hand, it appears from records that in its best interest the assessee had agreed for deferment of fees. Accordingly the original agreement was modified which was supported by a resolution of the board. The genuineness of such modification is not in question as the financial institution was a party to such modification. Therefore, as the accrual of income was deferred prior to the closing of the accounting year, which as evident from facts was for business expediency, and as the right to receive the fee was suspended, the Tribunal was justified in deleting the addition - Decided in favour of the assessee.
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