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2007 (11) TMI 359 - HC - Income TaxAccrual of income - “Whether, Tribunal was right in law in allowing the income of the assessee to be taxed on receipt basis and not on accrual basis, even though the assessee was following the mercantile system of accountancy?” - Assessee corporation is engaged in the business of development and sale of industrial sheds. The assessee raised certain construction in the form of industrial sheds on the land provided by the State of Punjab and made allotments to the entrepreneurs. - it is undisputed that the assessee allots an industrial shed on leasehold basis in which premium is required to be paid over 10 years period and the rights are transferred in favour of the allottee/lessee on the payment of final instalment - right to receive premium accrues or arises in favour of the assessee on yearly basis till the payment of the final installment is made – Held that installment actually received assessable
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