https://www.taxtmi.com/caselaws?id=289738 The ITAT allowed the appeal of the assessee, overturning the CIT(A) order for the assessment year 2013-14. The Tribunal deleted the addition of Rs. 58,23,060 under section 56(2)(viib) of the Income Tax Act, 1961, emphasizing the necessity of actual receipt of consideration for recognizing income. The ruling clarified that notional amounts, such as unencashed cheques, do not constitute taxable income under the mercantile system of accounting. The decision underscored the importance of actual cash receipt over mere journal entries in determining income, aligning with a similar ITAT Kolkata Bench decision. en-us Thu, 07 Nov 2019 00:00:00 +0530 Thu, 14 Nov 2024 11:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289738 The ITAT allowed the appeal of the assessee, overturning the CIT(A) order for the assessment year 2013-14. The Tribunal deleted the addition of Rs. 58,23,060 under section 56(2)(viib) of the Income Tax Act, 1961, emphasizing the necessity of actual receipt of consideration for recognizing income. The ruling clarified that notional amounts, such as unencashed cheques, do not constitute taxable income under the mercantile system of accounting. The decision underscored the importance of actual cash receipt over mere journal entries in determining income, aligning with a similar ITAT Kolkata Bench decision. Case-Laws Income Tax Thu, 07 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289738