1982 (1) TMI 51

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....w in holding that the sums of Rs. 1,60,806 and Rs. 6,290 were liable to tax in the hands of the assessee for the assessment years 1967-68 and 1968-69, respectively ? " M/s. Sujan Singh Sadana (hereinafter to be referred as " the assessee carries on business in money-lending and military contracts. The assessee had taken contract from the military authorities for the supply of meat, fresh buffalo milk, vegetables, charcoal and other things. The assessee did not work these contracts itself but, as in the past, the work was got executed through sub-contractors. During the assessment year 1967-68, relevant to the accounting period ending 31st March, 1967, and 1968-69, relevant to the accounting period ending 31st March, 1968, the assessee go....

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....ew that no portion of the commission had been forgone by the assessee up to the end of the accounting year 3lst March, 1967, The ITO also took the view that the income was liable to taxation on accrual basis and since the commission had accrued to the assessee during the year under consideration, it was liable to be assessed to tax during, the relevant assessment years. Consequently, a sum of Rs. 1,60,806 was included towards the total income of the assessee for the assessment year 1967-68 and a sum of Rs. 6,290 for the assessment year 1968-69. On appeal, the AAC upheld the order of the ITO. Still dissatisfied, the assessee filed an appeal before the Income-tax Appellate Tribunal, On a consideration of the entire matter, the Tribunal hel....