https://www.taxtmi.com/caselaws?id=16636 Post-warranty service charges received in advance were not taxable as income in AY 1978-79 unless and until the assessee's right to appropriate the amounts accrued on rendering the corresponding services. The HC held that the sums remained advances because ownership and entitlement to appropriate did not vest at receipt; income arose only when repairs/servicing were actually performed and the amounts were transferred from the advances account to workshop income under the consistently followed accounting system. Consequently, the Tribunal correctly held that the receipts were not assessable in the relevant year beyond the portion relatable to services rendered, and therefore the CIT lacked jurisdiction to revise the assessment under s. 263. en-us Tue, 19 Aug 1997 00:00:00 +0530 Mon, 29 Dec 2025 17:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16636 Post-warranty service charges received in advance were not taxable as income in AY 1978-79 unless and until the assessee's right to appropriate the amounts accrued on rendering the corresponding services. The HC held that the sums remained advances because ownership and entitlement to appropriate did not vest at receipt; income arose only when repairs/servicing were actually performed and the amounts were transferred from the advances account to workshop income under the consistently followed accounting system. Consequently, the Tribunal correctly held that the receipts were not assessable in the relevant year beyond the portion relatable to services rendered, and therefore the CIT lacked jurisdiction to revise the assessment under s. 263. Case-Laws Income Tax Tue, 19 Aug 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16636