https://www.taxtmi.com/caselaws?id=59379 The Tribunal upheld the AO's decision to tax the royalty income accrued to the assessee based on the agreement with UPT, despite UPT's dispute over the services rendered. The Tribunal found that under the mercantile system, income is recognized when the right to receive income is acquired, and in this case, the right to royalty was acquired upon providing services and became due upon UPT's sales. Therefore, the Tribunal allowed the Revenue's appeal, overturning the CIT(A)'s decision to delete the addition of Rs. 1,35,00,000 made by the AO. en-us Fri, 31 Aug 2007 00:00:00 +0530 Wed, 25 Jul 2012 18:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59379 The Tribunal upheld the AO's decision to tax the royalty income accrued to the assessee based on the agreement with UPT, despite UPT's dispute over the services rendered. The Tribunal found that under the mercantile system, income is recognized when the right to receive income is acquired, and in this case, the right to royalty was acquired upon providing services and became due upon UPT's sales. Therefore, the Tribunal allowed the Revenue's appeal, overturning the CIT(A)'s decision to delete the addition of Rs. 1,35,00,000 made by the AO. Case-Laws Income Tax Fri, 31 Aug 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59379