Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 19 - AT - Income TaxEstimation of profit - Income from development works – Held that:- The amounts were recovered by the Government and are paid to the respective authorities - Since the amount was paid on behalf of the assessee, such recovery is included in the operating income and is claimed as an expenditure by debiting to the Profit & Loss Account - there is no profit element in respect of the said recoveries made - It is only in the year in which assessee receives such recoveries made by the Government that such income should be estimated and brought to tax. It is also the case of the assessee that the assessee has been following consistent method of accounting for the income in respect of the departmental reveries, only in the year in which such recoveries have been released in favour of the assessee by the Government – The issue was restored for fresh decision. Estimation of income – work entrusted to sub-contractors – Held that:- Following assessee's own cases for assessment years 2001-02 – The tribunal estimated the income on sub-contract receipts at 4% - Partly allowed in favour of assessee. Interest received on provision of bank guarantee – Held that:- Following assessee's own cases for assessment years 1991-92 and Tuticorin Alkali Chemicals & Fertilisers Ltd.[1997 (7) TMI 4 - SUPREME Court] – Income attracts tax as soon as it accrues. The application/destination of the income has nothing to do with its accrual/taxability - Interest income is always of a revenue nature unless it is received by way of damages/compensation - Decided against assessee. Deduction u/s 80IA – Held that:- following assessee's own case for earlier years - The contractor and the developer cannot be viewed differently. Every contractor may not be a developer but every developer developing infrastructure facility on behalf of the Government is a contractor - The assessee has developed infrastructure facility as per the agreement - Merely because in the agreement for development of infrastructure facility the assessee is referred to as a contractor or because some basic specifications are laid down, it does not detract the assessee from the position of being a ‘developer’ nor will it debar the assessee from claiming deduction u/s 80IA(4) – Decided against Revenue.
|