Tribunal Applies Real Income Theory, Rules No Income Tax on Unpaid Claims Due to Parent Company's Financial Crisis.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Accrual of income - since parent Company was in severe financial crisis, the assessee could not receive any payment for a long time and even after delay of nearly four years received only 8.58% of the total claim - with respect to the larger amount, the bill/claim was for damages for pre mature termination of the contract which contracted party did not even accepted - Tribunal has correctly applied the real income theory, no income tax can be leviable....