https://www.taxtmi.com/caselaws?id=255503 The High Court of Andhra Pradesh upheld the Income Tax Appellate Tribunal's decision in a case involving a Civil Contractor and the Hyderabad Municipal Water Supply and Sewerage Board. The Court ruled that income accrues under the mercantile system of accounting when the right to receive it arises, regardless of actual receipt. The contractor's failure to include a 2.5% deduction in their returns for a specific year was deemed taxable income for that year based on contractual terms. The judgment reinforces the distinction between the right to receive income and actual receipt, aligning with established Supreme Court precedents. en-us Tue, 16 Dec 2014 00:00:00 +0530 Fri, 08 May 2015 11:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=255503 The High Court of Andhra Pradesh upheld the Income Tax Appellate Tribunal's decision in a case involving a Civil Contractor and the Hyderabad Municipal Water Supply and Sewerage Board. The Court ruled that income accrues under the mercantile system of accounting when the right to receive it arises, regardless of actual receipt. The contractor's failure to include a 2.5% deduction in their returns for a specific year was deemed taxable income for that year based on contractual terms. The judgment reinforces the distinction between the right to receive income and actual receipt, aligning with established Supreme Court precedents. Case-Laws Income Tax Tue, 16 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=255503