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2019 (11) TMI 1080 - HC - Income TaxIncome recognition - year of assessment - sale of land - HELD THAT:- We note that the finding of fact arrived at by the Tribunal that the Respondent was not able to comply its obligations under the MOU in the previous year relevant to the subject assessment year so as to be entitled to receive ₹ 20 crore is not shown to be perverse. In fact, the issue is covered by the decision of the Apex Court in the case of CIT v. Shoorji Vallabdas & Co. [1962 (3) TMI 6 - SUPREME COURT] wherein it is held that “Income tax is a levy on income. No doubt, the Income-tax Act takes into account two points of time at which the liability to tax is attracted, viz., the accrual of the income or its receipt; but the substance of the matter is the income, if income does not result at all, there cannot be a tax.” So also in Morvi Industries Ltd. [1971 (10) TMI 5 - SUPREME COURT] has held that income accrues when there is a corresponding liability on the other party. In the present facts, in terms of the MOU, there is no liability on the other party to pay the amounts. In any event, the amount of ₹ 20 crore has been offered to tax in the subsequent assessment year and also taxed. In the aforesaid circumstances, the view taken by the Tribunal on facts is a possible view and calls for no interference. In any event the tax on the amount of ₹ 20 crore has been paid in the next year. No substantial question of law
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