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2017 (7) TMI 1221 - HC - Income TaxAccrual of income - Charges for shortfall in quantities for non-use under the “take or pay agreement” clause - assessment of income - Tribunal allowed the assessee's appeal on the ground that the income had not accrued - Held that:- As Revenue vehementally contended that the agreement was cancelled in September 2005 and that therefore, can have no effect on the assessee's tax liability for the assessment year 2003-04 corresponding to the financial year 2002-03 since the assessee followed the mercantile system accounting but had this been the sole ground for the Revenue to delete the addition, we would have examined the issue further. Focus of the Tribunal was not on the subsequent cancellation of the agreement obliging the purchaser to lift the minimum quantity of material or pay the amount on the fact that the purchaser had disputed the very liability. That being the position, we do not find that the Tribunal committed any error. No question of law arises
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