Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 785 - ITAT DELHIAllowability of 80HHC from Gross Total Income - HELD THAT:- As decided in own case [2023 (6) TMI 1363 - ITAT DELHI] held by merely relying the decision of Hon’ble Supreme Court in IPCA Laboratories Ltd. Case [2004 (3) TMI 9 - SUPREME COURT] 80HHC deduction can not be declined as adjusted business profit has to be recomputed and may not be in minus. Revenue recognition - Accrued interest income and pursuant to arbitration award, as income of the assessee - HELD THAT:- Legal battle shows the uncertainty of recovering the interest amount and also the principal. The Hon'ble Supreme Court in the case of Shoorji Vallabhji [1962 (3) TMI 6 - SUPREME COURT] and in the case of Godara Electricity [1997 (4) TMI 4 - SUPREME COURT] has laid down the ratio that the substance of the matter is the income which has to be recognized as per the system of accounting followed by the assessee in view of section 145 of the Act if the income does not result at all, there cannot be a tax, even though in book-keeping, an entry is made about a hypothetical income, which does not materialize. Similarly, in the case of Surya Agroil [2006 (4) TMI 554 - SC ORDER] certain dispute arose and the dispute was referred to the Arbitration Tribunal and the Tribunal passed order in favour of the assessee, and the award was challenged in the Hon'ble Delhi High Court, which was dismissed wherein as mentioned elsewhere, the fact of uncertainty has to be considered while recognizing the revenue and in our considered opinion, considering the peculiar facts of the case of uncertainty and keeping in mind the decision of the Hon'ble Supreme Court [supra], we do not find any merit in recognizing the revenue for the year under consideration since in the case of KJI, the assessee has subsequently recognized the revenue as and when it received as mentioned in the chart elsewhere. No addition is called for during the year under consideration and in so far as Surya Agroil is concerned, there is not even an iota of chance to recover the arbitral award. No addition is called for. Ground Nos. 3 and 4 taken together are allowed.
|