https://www.taxtmi.com/caselaws?id=24043 HC held that, though the assessee maintained accounts on a mercantile basis, retention money under works contracts did not accrue as income in the relevant previous year. Under the contract terms, only 90% of the bill amount accrued upon execution of work; the balance 10% or 5%, as retention money, was contingent upon satisfactory completion, removal of defects and adjustment of damages, if any. Until such conditions were fulfilled, no enforceable liability arose on the contractee and no corresponding right to receive accrued to the assessee. Consequently, the retention money could not be brought to tax for A.Y. 1965-66. The reference was answered in favour of the assessee. en-us Mon, 05 Dec 1988 00:00:00 +0530 Wed, 03 Dec 2025 16:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24043 HC held that, though the assessee maintained accounts on a mercantile basis, retention money under works contracts did not accrue as income in the relevant previous year. Under the contract terms, only 90% of the bill amount accrued upon execution of work; the balance 10% or 5%, as retention money, was contingent upon satisfactory completion, removal of defects and adjustment of damages, if any. Until such conditions were fulfilled, no enforceable liability arose on the contractee and no corresponding right to receive accrued to the assessee. Consequently, the retention money could not be brought to tax for A.Y. 1965-66. The reference was answered in favour of the assessee. Case-Laws Income Tax Mon, 05 Dec 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24043