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Issues involved: Appeal by Revenue against CIT(A) order deleting addition on account of retention money on contract amounting to Rs. 3,94,28,431.
Summary: Issue 1: Addition on account of retention money The assessee, engaged in electrical construction business, did not include retention amount on contract in its income for the year as the amounts were yet to be received. The Assessing Officer disagreed citing the issue's recurrence and pending status of a related case. CIT(A), following a previous decision and considering consistency, deleted the addition. The Revenue challenged the decision based on a pending Special Leave Petition (SLP) before the Supreme Court. The assessee, however, informed that the SLP was dismissed. The Tribunal upheld the CIT(A)'s decision, emphasizing the need to follow the jurisdictional High Court's decision unless overruled by a higher authority or stayed. As the Revenue failed to provide reasons to deviate from the Tribunal's earlier decision, the current appeal was dismissed, affirming the allowance of the retention amounts deduction. In conclusion, the appeal by Revenue was dismissed, upholding the deletion of the addition on account of retention money on contract.
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