https://www.taxtmi.com/caselaws?id=753241 The ITAT Delhi held that surcharge income on delayed electricity payments by a state PSU should be taxed on receipt basis rather than accrual basis. The tribunal found the surcharge was disputable, not mandatorily payable, and hypothetical rather than real income under the assessee's accounting policy. The AO was directed to verify when surcharge was actually realized and offered as income. Regarding Section 14A disallowances, the tribunal admitted additional CA certificate evidence and remanded the matter to AO for fresh examination, directing consideration of whether investments were made from own funds rather than borrowed funds. en-us Mon, 27 May 2024 00:00:00 +0530 Wed, 29 May 2024 13:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753241 The ITAT Delhi held that surcharge income on delayed electricity payments by a state PSU should be taxed on receipt basis rather than accrual basis. The tribunal found the surcharge was disputable, not mandatorily payable, and hypothetical rather than real income under the assessee's accounting policy. The AO was directed to verify when surcharge was actually realized and offered as income. Regarding Section 14A disallowances, the tribunal admitted additional CA certificate evidence and remanded the matter to AO for fresh examination, directing consideration of whether investments were made from own funds rather than borrowed funds. Case-Laws Income Tax Mon, 27 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753241