2003 (12) TMI 14

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....ravelu J.- The assessment years in these cases are 1983-84 and 1988-89. The question referred is whether the Appellate Tribunal was right in law in deleting the addition made by the Assessing Officer with respect to optional service charges collected by the assessee covering a period of two years. The assessee is a private limited company carrying on business in television sets. In the previous....

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....s the assessee-company received the amount as remuneration for the work done and the income received by the assessee accrued as income for that year. The assessee received 90 per cent, of the bill amount and it certainly amounted to income and therefore it was subjected to tax. Counsel for the assessee relied on the decision in the case of CIT v. Southern Explosives Co. [2000] 242 ITR 107 (Mad)....

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....sessee became a trading receipt when the assessee became entitled to appropriate the same to its income at the time of rendering the service. Counsel for the Revenue also relied upon the decision in the case of CIT v. Shankaranarayan Construction Co. [1992] 197 ITR 688 (Karn), wherein it was held that the fact that the assessee had maintained its accounts on cash basis will not convert every ki....