2006 (1) TMI 76

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..... after the contract is completed is to be treated as income only when the moneys are actually received, even though the appellant is following a mercantile system of accounting – revenue appeal dismissed - - - - - Dated:- 5-1-2006 - Judge(s) : K. RAVIRAJA PANDIAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by K. Raviraja Pandian J.- This appeal has been fi .....

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..... tract price would be retained by the principal contractor and it would be paid after one month subject to the satisfactory performance of the boilers. The Assessing Officer brought into account 10 per cent, of the contract amount, which has been retained by the principal contractor and levied tax on the ground that the assessee was maintaining mercantile system of accounting and in respect of 10 p .....

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..... eration. Under the Income-tax Act, the income accrued or received by the assessee alone is taxable. This position is fortified by the decision of the Supreme Court in the case of CIT v. Shoorji Vallabhdas and Co. [1962] 46 ITR 144 wherein it has been held as follows: "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 ta .....

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