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2016 (5) TMI 1353 - AT - Income TaxAccrual of income - Treatment to contingent sales - realization of income - assessment of income of the assessee - Held that:- The impugned contingent sale on account of differential sale price claimed by the assessee which was pending before the ATE for adjudication is not accrued to the assessee as revenue for the relevant financial year. The assessee has rightly recognized the revenue as per the sale price fixed by the state government which is the real income accrued to the assessee as per the prevailing situation. The additional claim made by the assessee is a mere claim which was not settled by the authorities. Unless the issue is settled, the assessee cannot recognize its revenue merely based on its claim. The assessee has rightly treated the difference between sale price claimed and the price paid by the APTRANSCO as contingent sales. See Godhara Electricity Company Ltd. Vs. CIT [1997 (4) TMI 4 - SUPREME Court] wherein held that the income accrued to the assessee has to be considered by taking the probability of realization of income and in case if the amount to be realized is under dispute, there was no real income accrues to the assessee. CIT(A) after considering the facts and circumstances of the case has rightly deleted the additions made by the A.O. We do not see any error or infirmity in the order passed by the CIT(A). - Decided in favour of assessee.
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