https://www.taxtmi.com/caselaws?id=756763 Deferred or contingent consideration does not accrue for tax purposes until the assessee acquires a vested right to receive it. Where the agreement postpones payment and makes the balance consideration contingent on fulfilment of obligations, only the amount actually received or legally accrued can be brought to tax in the relevant assessment year. The Revenue cannot treat the entire contractual sum as having accrued merely because the agreement was executed. The balance consideration, having been offered in a subsequent year, was correctly taxable only when received or accrued. The addition for long-term capital gains was therefore deleted and the Revenue's appeal dismissed. en-us Wed, 31 Jul 2024 00:00:00 +0530 Thu, 08 Aug 2024 09:12:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756763 Deferred or contingent consideration does not accrue for tax purposes until the assessee acquires a vested right to receive it. Where the agreement postpones payment and makes the balance consideration contingent on fulfilment of obligations, only the amount actually received or legally accrued can be brought to tax in the relevant assessment year. The Revenue cannot treat the entire contractual sum as having accrued merely because the agreement was executed. The balance consideration, having been offered in a subsequent year, was correctly taxable only when received or accrued. The addition for long-term capital gains was therefore deleted and the Revenue's appeal dismissed. Case-Laws Income Tax Wed, 31 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756763