2015 (9) TMI 853 - SCH - Income Tax

Receipts on sale of electricity energy to A.P. TRANSCO - accrual of income - ITAT deleted the addition confirmed by HC 2013 (7) TMI 914 - ANDHRA PRADESH HIGH COURT by holding tat, Amount payable by the A.P. TRANSCO to the respondent - assessee is in dispute and such dispute is yet to be resolved by arbitration. Merely because the assessee has raised a bill for recovery of certain amount, it does not partake the character of income . If the amount is disputed and the same is pending adjudication in arbitration, there is no crystallization and quantification of the amount due and payable by the debtor. Unless the debtor accepts the amount due and paid, the question of accrual of income even in mercantile system of accounting does not and cannot arise - SC dismissed the appeal of the revenue.