9911796707
TMI Blog2008 (6) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... mit on the following questions : "(1) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in coming to the conclusion that the royalty of Rs. 1.35 crores accrued to the appellant during the year in question. (2) In view of the principles laid down in the decision of this hon'ble High Court in the case of CIT v. Smt. Vimla D. Sonawane [1995] 212 ITR 489 (B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the appellant till date pursuant to the royalty agreement as there is dispute between the parties and arbitration proceedings are being proceeded with. It is pointed out that when the parties have been referred to arbitration pursuant to a suit filed by UPT before this court, seeking relief that no amount was due and payable by them to the assessee herein. 3. The learned Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to assess income in the hands of an assessee. The assessee therein was also following the mercantile system of accounting and had made entries in the books regarding electrical charges for the supply made to the consumers, however, no real income had accrued to the assessee-company. The Tribunal had held that it represented hypothetical income and the Assessing Officer was not right in assessing i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the facts of the present case. 5. In the instant case, there is no real accrual of income. There is dispute between the parties for the relevant assessment year which was pending in arbitration. It is only on the arbitral proceedings coming to an end and award being passed and income received by the assessee it will be liable to be assessed. 6. Considering the above, questions Nos. 1, 2 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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