TMI Blog2012 (8) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... In the result, the appeal filed by the assessee is allowed. - S/SHRI N.R.S.GANESAN, JM and B.R.BASKARAN, AM Assessee by Shri A.S.Narayanamoorthy, CA Revenue by Ms. Vani Raj, Jr. DR O R D E R Per B.R.BASKARAN, Accountant Member: The appeal of the assessee is directed against the order dated 20-08-2010 passed by the Ld. CIT(A)-I, Kochi and it relates to the assessment year 2007-08. 2. The only issue urged in this appeal is whether the Ld. CIT(A) is justified in confirming that the freezer deposit received from various dealers should be assessed as income of the assessee. 3. At the time of hearing, the Ld. Counsel for the assessee submitted a copy of the order dated 25-05-2012 passed by this Bench in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Hence, under the above facts and circumstances of the case, this issue to be decided in favour of the assessee by setting aside the orders of the authorities. Besides the assessee never treated this as income in the books. The assessee consistently holding it so as the amount attached with a liability to refund. The assessee never admitted this amount as income in the books. Only accrued income arose to the assessee during the relevant previous year also can be brought to tax under the Income-tax provisions which is a settled law. In other words, there must be a debt owned to the assessee and until this is created in favour of the assessee as a debt due to the assessee, it cannot be said as income accrued. Hence, the decision relied by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the deposits collected from vendors cannot be considered as the income of the assessee so long as the agency agreement continues. Accordingly, we set aside the order of Ld CIT(A) on this issue in the hands of both the assessees and direct the AO to delete the addition made on this issue in the hands of both the assessees herein . 4. The Ld A.R submitted that the agency agreements in the instant case are live and continuing. Accordingly, consistent with the view taken in the above said case, we also hold that the deposits collected from vendors cannot be considered as income of the assessee so long as the agency agreement continues. Accordingly, we set aside the order of the Ld. CIT(A) on this issue and direct the Assessing Officer t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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