TMI Blog2022 (8) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ITAT/26/2022 IA No.GA/2/2022 - - - Dated:- 25-7-2022 - THE HON BLE JUSTICE T. S. SIVAGNANAM AND THE HON BLE JUSTICE BIVAS P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and circumstances of the case and in law, the learned Tribunal has failed to appreciate the fact that assessee has changed its method of computation of Income in AY 2014-15 for reducing the retention money from the taxable income ? We have heard Mr. Smarajit Roychowdhury, learned standing counsel for the appellant/revenue and Mr. S.M. Surana, learned counsel assisted by Mr. Bhaskar Sengupta, learned Advocate appearing for the respondent/assessee. The short question which falls for consideration is whether the assessing officer was right in holding that the income on account of retention money is deemed to be the income of the assessee for the assessment year under consideration A.Y. 2014-15. On appeal before the Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... implex Concrete (Piles) India Pvt. Ltd. reported in 179 ITR 8 (Cal). On facts, the assessee pointed out that part of the said retention money was taken as income for the assessment year 2015- 16 to 2017-18 when a particular project was completed and have been duly included in the return of income for the said assessment years 2015-16 to 2017-18. Further, the assessee stated that the remaining amount of retention money shall also be included in the income for the year when particular projects were completed. There are several other decisions which the assessee has referred to before the CIT(A). After considering the facts of the case, specially the documents which were produced namely, the sample contract and other materials, the CIT(A) c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s: We note from the relevant clauses of the contract that the contractees had the right to withhold certain percentage of the consideration till the conclusion of the project and only after certification of concluded projects the retained portion of the amounts are disbursed finally which may be in the succeeding assessment years and is contingent upon the terms and conditions of the contract. We also note that the AO has not disputed the amount which has been retained by the contractees. In such a scenario, merely because the assessee had booked the income in this year without actual receipt of it, cannot be chargeable to tax as per the Act. The reasons given by the AO to disallow the claim of the assessee cannot be sustained and was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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