https://www.taxtmi.com/caselaws?id=760269 The HC upheld ITAT's decision allowing the assessee's loss claim in plastic division despite revenue's argument that no actual business existed due to absence of finished goods stock. Revenue contended the assessee followed mercantile accounting requiring accrual basis recognition. The HC emphasized tax levy concerns real income with certainty aspects, citing SC precedent in Excel Industries. The settlement agreement executed post-balance sheet acknowledged contract disintegration and assessee's loss of full transaction value rights. Applying Accounting Standards AS-4 and AS-9 for post-balance sheet contingencies, the HC found no manifest error in ITAT's favorable ruling for the assessee. en-us Thu, 28 Mar 2024 00:00:00 +0530 Thu, 17 Oct 2024 10:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760269 The HC upheld ITAT's decision allowing the assessee's loss claim in plastic division despite revenue's argument that no actual business existed due to absence of finished goods stock. Revenue contended the assessee followed mercantile accounting requiring accrual basis recognition. The HC emphasized tax levy concerns real income with certainty aspects, citing SC precedent in Excel Industries. The settlement agreement executed post-balance sheet acknowledged contract disintegration and assessee's loss of full transaction value rights. Applying Accounting Standards AS-4 and AS-9 for post-balance sheet contingencies, the HC found no manifest error in ITAT's favorable ruling for the assessee. Case-Laws Income Tax Thu, 28 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760269