9911796707
TMI Blog2024 (10) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... Indore in ITA No.174/Ind/2023 for the Assessment Year - 2018 - 19, whereby the revisional order dated 29.03.2023 passed by the Principal Commissioner of Income Tax, Indore (PCIT) under Section 263 of the Income Tax Act has been set aside. 02. Facts of the case in short are as under:- 2.1. The respondent is a income tax assessee engaged in the business of construction, operation and maintenance of infrastructure projects under the Government Schemes. The respondent filed its Income Tax Return for the Assessment Year - 2018 - 19 on 24.10.2018 declaring total income of Rs. 7,92,32,830/-. The case was selected for scrutiny through CASS, and thereafter, the Assessing Officer passed an order of assessment under Section 143(3) of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity was of the opinion that the liability created by the respondent in the books of account for Nardana Claim - 1 & Nardana Claim - 2 is contingent in nature as it is dependent upon the outcome of the order of the Court, such liability as per ICDS cannot be recognized, therefore, the said amount received by way of award is taxable during the year of the receipt as business income. 2.4. The show-cause notice was replied by the respondent and the same was not found satisfactory, therefore, the revisional authority passed an order dated 29.03.2023 by holding that the assessment order dated 26.02.2021 for the Assessment Year - 2018 - 19 is erroneous and set aside the same and remanded by the matter to the Assessing Officer for re-examination. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act by the Assessing Officer with a specific query about the Nardana Claim - 1 & Nardana Claim - 2. In response to the said notice, the assessee filed a cogent reply. The Assessing Officer's approach in accepting the explanation furnished by the assessee to him was not found unsustainable view as the liability of Nardana Claim - I & Nardana Claim - 2 could have been recognized as income in the Assessment Year - 2018 - 19. The amount of Rs. 29,02,76,211/- was paid to the assessee in the Assessment Year - 2018 - 19 after furnishing 100% bank guarantee on 100% margin, therefore, same was rightly shown as liability in the balance-sheet. It is not a case that the assessee has concealed the income of receipt by way of award. After ..... X X X X Extracts X X X X X X X X Extracts X X X X
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