Interim restraint on storage charges meant reserved amounts did not accrue as income in the assessment year.

Amounts collected under an interim court order and required to be kept in reserve did not constitute income, because the assessee had no unfettered right to appropriate the difference between the contractual storage charges and the reduced rate. Relying on an earlier decision on materially similar facts, the Court held that the amount had not accrued or arisen during the relevant assessment year. The deletion of that amount from total income was therefore upheld, and the issue was answered in favour of the assessee.

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Issues: Whether the amount representing the difference between the contractual storage charges and the reduced rate directed to be kept in reserve pursuant to an interim court order constituted income of the assessee for the relevant assessment year.

Analysis: The amount was collected subject to the interim directions and was required to be kept separately, with the assessee having no unfettered right to appropriate it as income. In view of the earlier decision on materially similar facts, the amount could not be treated as having accrued or arisen to the assessee during the assessment year.

Conclusion: The deletion of the amount from the assessee's total income was upheld and the question was answered in favour of the assessee.

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