https://www.taxtmi.com/caselaws?id=449634 ITAT Delhi ruled that 80HHC deduction cannot be declined merely based on adjusted business profit being negative, as it must be recomputed following SC precedent in IPCA Laboratories. Regarding revenue recognition, the tribunal held that accrued interest income and arbitration award amounts should not be recognized as income due to uncertainty of recovery. Following SC decisions in Shoorji Vallabhji and Godara Electricity, income recognition depends on actual materialization rather than book entries. The tribunal distinguished between cases where revenue was later received versus those with no recovery prospects, allowing the assessee's grounds and directing no additions for uncertain income. en-us Tue, 30 Jan 2024 00:00:00 +0530 Thu, 15 Feb 2024 12:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449634 ITAT Delhi ruled that 80HHC deduction cannot be declined merely based on adjusted business profit being negative, as it must be recomputed following SC precedent in IPCA Laboratories. Regarding revenue recognition, the tribunal held that accrued interest income and arbitration award amounts should not be recognized as income due to uncertainty of recovery. Following SC decisions in Shoorji Vallabhji and Godara Electricity, income recognition depends on actual materialization rather than book entries. The tribunal distinguished between cases where revenue was later received versus those with no recovery prospects, allowing the assessee's grounds and directing no additions for uncertain income. Case-Laws Income Tax Tue, 30 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449634