2000 (12) TMI 19

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....umstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the amount of Rs.51,72,000 retained by the authorities from the contract payment receivable by the assessee on accrual basis this year could not be treated as the assessee's income for the year inspite of the fact that income was being assessed on accrual basis?" The facts of the case are that the respondent-assessee is engaged in the construction of tunnels, dams, etc. For the assessment year 1988-89, it filed a return on July 28, 1988, declaring a loss of Rs.47,48,047. By an order dated March 14, 1988, the Assessing Officer finalised the assessment under section 143(3) disallowing the assessee's claim for deduction of Rs.51,72,000 which was debite....

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.... of the fact that the actual money may not have been received in that year. He submitted that the question sought by the Revenue is a pure question of law and as there is no direct decision of this court on the issue the Tribunal may be directed to make reference thereof to this court. Shri M. L. Sarin, senior advocate, appearing for the respondent-assessee, argued that the question sought by the Revenue has already been answered in favour of the assessee by different courts and, therefore, this petition should be dismissed. He submitted that the amount of Rs.51,72,000 retained by the authorities by way of security for successful completion of the contract cannot be treated as an income of the assessee for the assessment year 1986-87 and....