https://www.taxtmi.com/caselaws?id=367733 The court held that the amount waived by the Principals is taxable as revenue receipt in the hands of the assessee, as it represents profits and gains from business. The waived amount was classified as trading receipts in the nature of commission income. The court determined that the waived amount should accrue in the current assessment year, rejecting claims of potential liabilities from pending litigation. Regarding the disallowed expenditure in the prior assessment year, the court directed the Assessing Officer to verify the claim for deduction under Section 40(a)(ia) and decide accordingly. The appeal was allowed in part, with each party bearing their own costs. en-us Mon, 06 Aug 2018 00:00:00 +0530 Tue, 25 Sep 2018 08:25:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=367733 The court held that the amount waived by the Principals is taxable as revenue receipt in the hands of the assessee, as it represents profits and gains from business. The waived amount was classified as trading receipts in the nature of commission income. The court determined that the waived amount should accrue in the current assessment year, rejecting claims of potential liabilities from pending litigation. Regarding the disallowed expenditure in the prior assessment year, the court directed the Assessing Officer to verify the claim for deduction under Section 40(a)(ia) and decide accordingly. The appeal was allowed in part, with each party bearing their own costs. Case-Laws Income Tax Mon, 06 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=367733