Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (6) TMI 895 - HC - Income TaxBooking of expenses against the receipt of Escalation of price of supply of goods - mercantile system of accounting - Held that:- We accept the principle which has been sought by learned advocate Mr. Shah for the appellant but on the facts of the present case when the assessee has shown the expenses, ultimately the assessee has not shown the amount which he is entitled to receive in the books of account. The assessee has not even shown the outstanding balance anywhere in the books of account. The assessee has relied on clause 12 of the contract as referred to above and subsequently it has credited the escalation payments after the claims sanctioned and payments have been received from the railways. Though the expenses are claimed at the relevant year, the assessee has not shown the same in the books of account. In our view the principles sought to be relied on by the assessee are for the expenses incurred and not for the income. The assessee has to show in the books of account the expenses incurred or future income or bill outstanding from the railway. This has not been done. We are, therefore, in complete agreement with the view taken by the Tribunal. - Decided against assessee
|