https://www.taxtmi.com/caselaws?id=776550 The ITAT Cochin held that retention money withheld by the appellant must be included in contract revenue for AY 2017-18 under section 43CB and ICDS-III, as the mercantile system requires accrual-based income recognition and the Finance Act, 2018 explicitly mandates this treatment from 01.04.2017. The appellant's contention to exclude retention money despite the legislative change was rejected. The tribunal distinguished a Kerala HC judgment as inapplicable. While confirming the addition of retention money for AY 2017-18, the ITAT remitted the matter to the AO to verify if the same amounts were taxed in AY 2019-20 and 2020-21, directing deletion of duplicate taxation if found and consequential adjustments for all relevant years. en-us Mon, 06 Jan 2025 00:00:00 +0530 Wed, 13 Aug 2025 07:27:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776550 The ITAT Cochin held that retention money withheld by the appellant must be included in contract revenue for AY 2017-18 under section 43CB and ICDS-III, as the mercantile system requires accrual-based income recognition and the Finance Act, 2018 explicitly mandates this treatment from 01.04.2017. The appellant's contention to exclude retention money despite the legislative change was rejected. The tribunal distinguished a Kerala HC judgment as inapplicable. While confirming the addition of retention money for AY 2017-18, the ITAT remitted the matter to the AO to verify if the same amounts were taxed in AY 2019-20 and 2020-21, directing deletion of duplicate taxation if found and consequential adjustments for all relevant years. Case-Laws Income Tax Mon, 06 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776550