TaxTMI 
TaxTMI 
2024 (11) TMI 97
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....t being ITA No.594/Asr/2019 came to be dismissed, whereas the appeal filed by the respondent herein being ITA No. 587/Asr/2019 came to be allowed. 2. The facts-in-brief are that the assessee-respondent herein had filed the return of income on 12.10.2016 for the assessment year 2016-17 declaring income of rupees nil after setting off brought forward losses of Rs. 1,83,50,597/-. However, during the assessment proceedings it was noticed by the appellant-department that the assessee had claimed excise duty refund of Rs. 5,15,25,900/- as capital receipt and had claimed exemption under Section 10 of the I.T. Act, 1961. The appellant-department was of the view that in view of amendment in finance I.T. Act, 2015 and as per the amended section 2 (2....
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...., Jammu, being CAJ/10327/2018-2019. The Commissioner of Income Tax (Appeals), Jammu, vide order dated 17.05.2019, while partly allowing the appeal held that the amount of Rs. 3,29,76,575/- cannot be taxed as income for the year 2016-17 on the ground that the Excise Department was under no obligation to pay balance 64% of the excise duty collected by the assessee during the said year. Thus, it was directed to the Assessing Officer to delete the addition of Rs. 3,29,76,575/-. However, the addition of balance amount of Rs. 1,85,49,324/-, which is 36% of the net excise duty, was treated as income of the assessee in view of Notification No.19 of 2008 and amended Section 2 (24) (xviii) of the Income Tax Act. 6. Aggrieved of the said order of Com....
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....ount is not realized or the debit amount is not actually disbursed; meaning thereby, in the present case, the impugned amounts as brought to tax by the Income Tax Officer did not represent the income which had really accrued to the assessee-respondent herein during the relevant assessment year. 9. It is settled law that income tax cannot be levied on hypothetical income and only real income can be taxed. Therefore, recording of entries in the books of accounts is not conclusive to determine the income under the provisions of law. As such, we are in full agreement with the learned regional Income Tax Tribunal, that whether an amount is to be considered as income or not is to be determined on the basis of the Income Tax Law and not on the ba....