https://www.taxtmi.com/caselaws?id=446601 The Bombay HC ruled in favor of the appellant company regarding taxation of sublease rent from IDBI. The court held that income under Section 56 cannot be taxed as "accrued" when the right to receive such income is disputed and pending adjudication. Since the sublease agreement was terminated in 1981 and cross-suits between parties remain pending before Small Causes Court, no definite right to receive rent existed. The appellant had not accepted rent post-termination, and the court determined that income cannot be taxed on presumption that future court orders may favor the appellant. The revenue's attempt to tax the disputed amount as accrued income for assessment year 1986-87 was unjustified. en-us Mon, 04 Dec 2023 00:00:00 +0530 Wed, 17 Jun 2026 10:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446601 The Bombay HC ruled in favor of the appellant company regarding taxation of sublease rent from IDBI. The court held that income under Section 56 cannot be taxed as "accrued" when the right to receive such income is disputed and pending adjudication. Since the sublease agreement was terminated in 1981 and cross-suits between parties remain pending before Small Causes Court, no definite right to receive rent existed. The appellant had not accepted rent post-termination, and the court determined that income cannot be taxed on presumption that future court orders may favor the appellant. The revenue's attempt to tax the disputed amount as accrued income for assessment year 1986-87 was unjustified. Case-Laws Income Tax Mon, 04 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446601