2011 (8) TMI 1372

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.... PER G.D. AGARWAL, VICE-PRESIDENT This is assessee's appeal against the order of the Commissioner of Income-tax (Appeals)-I, Baroda dated 17.8.2009 arising out of the order of the Assessing Officer under Section 143(3) of the Income Tax Act, 1961. 2. The only ground raised in this appeal reads as under: 1. That the learned CIT (Appeals) has erred in law and on facts in confirming....

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....s discharged by its member-industries. It is claimed that there are about 300 industry-members to whom the assessee company provides channel for effluent disposal of member-industries. This channel is 15 kms. and ends upto Gulf of Cambay. It is further stated that effluent discharge per day is 10 million gallons. A parallel road is constructed along the pipe lines for maintenance work. All the act....

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.... is in the year under consideration. In this year also the assessee offered 1/5th of the capital contribution received from the new members. The AO treated the entire receipt as taxable in the year under consideration. We find that in A.Y.2001-02, the ITAT after examining in detail, the facts and circumstances as well as the legal position held as under: "Thus a clear right is given by th....

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....cannot be said that income has actually accrued to the assessee in one year even though it might have received it in one year. Merely receipt does not ensure accrual unless equivalent part of agreed services by the receiver is rendered. In fact by paying one time fees a part of debt is created against the assessee which has to be discharged by meeting equivalent obligation in the form of continuin....