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2022 (8) TMI 141 - HC - Income TaxDeemed Income / accrual of income - income on account of retention money - consideration as income of the assessee for the assessment year under consideration A.Y. 2014-15 - appellant contended that the retention money was withheld by the principal in accordance with the terms of contract did not accrue to the assessee as income in the assessment year under consideration and only because the principal deducted tax u/s 194C AO ought not to have held that the retention money was includible in the gross receipts as income - HELD THAT:- In the factual circumstances especially as per the terms of contract between the assessee and the contractee, the retention money retained by the contractee is deferred payment and is contingent upon satisfactory completion of contract work. We hold that the right to receive the retention money is accrued only after the obligations under the contract are fulfilled and the assessee had no vested right to receive the same in this assessment year, therefore, it would not amount to an income of the assessee in the year in which it is retained. Therefore, we do not find any infirmity in the order of the Ld. CIT(A) and so, we confirm it and dismiss the appeal of the Revenue.
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