https://www.taxtmi.com/caselaws?id=377535 Retention sums under contract with a defect-liability period accrue only when the contractual condition (expiry free of defects) is fulfilled; therefore such retained amounts do not become taxable on mere contract completion, favouring the assessee. Findings of a prior Settlement Commission order that permitted capitalisations and adjustments must be given consequential effect in subsequent assessments while that order stands, limiting departmental additions. Loss on contract termination is allowable in the year of actual loss despite pending arbitration, with any future recovery to be adjusted when received. Penalties arising from additions are set aside where the Settlement Commission's order eliminates those additions, subject to reconsideration if that order is later declared void. en-us Wed, 13 Mar 2019 00:00:00 +0530 Tue, 23 Jul 2019 16:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=377535 Retention sums under contract with a defect-liability period accrue only when the contractual condition (expiry free of defects) is fulfilled; therefore such retained amounts do not become taxable on mere contract completion, favouring the assessee. Findings of a prior Settlement Commission order that permitted capitalisations and adjustments must be given consequential effect in subsequent assessments while that order stands, limiting departmental additions. Loss on contract termination is allowable in the year of actual loss despite pending arbitration, with any future recovery to be adjusted when received. Penalties arising from additions are set aside where the Settlement Commission's order eliminates those additions, subject to reconsideration if that order is later declared void. Case-Laws Income Tax Wed, 13 Mar 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377535