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TMI Blog2015 (5) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT V. Goyal M G Gases (2007 (7) TMI 241 - DELHI HIGH COURT). Furthermore, this Court is of the opinion that having once accepted the assessee’s explanation, with respect to the income not in fact accruing and therefore not liable to be taxed for the previous period 1998-99, the Revenue could not have in the absence of any compelling reason, treated an identical subject matter for succeeding years as it did. In view of the foregoing discussions the impugned order of the ITAT is set aside. - Decided in favour of assesse. - ITA 268/2008, ITA 269/2008, ITA 270/2008 - - - Dated:- 19-5-2015 - MR. S. RAVINDRA BHAT AND MR. R.K. GAUBA, JJ. For The Appellant : Mr. S. Ganesh Sr. Adv. with Mr. Syed Naqvi, Mrs. Namrata Kapoor Sharma and Mr. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utstanding amounts. After initially suffering adverse order, the CIT(Appeals) on being approached accepted the assessee s plea that income on the amounts due had not accrued for those years. However, the Revenue for the succeeding years 1999-2000, 2000-01 and 2001-02 held that the income was deemed to have accrued in the absence of the write off. The assessee which had met with initial success before the CIT(Appeals), was aggrieved by the impugned order of the ITAT regarding accrual of income. It is contended by Mr. Ganesh, learned senior counsel firstly that in view of the entirety of the circumstances of the case, though the entries in the books noted as outstanding dues were based on advances paid to the supplier, in fact, over a course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case. It was emphasised that since in the books the assessee never reversed the entry during the relevant points in time, learned counsel highlighted that logically the revenue was justified in brining to tax such amounts on the basis that they had accrued. 4. The judgment Shoorji Vallabhdas Co. (supra) has been recently follows in CIT V. Excel Industries Ltd. 358 ITR 295 where it was reiterated that income tax is levied on real income and not hypothetical income. Therefore, entries inspired by realistic prospects of their realisation cannot per se constitute the basis of a valid levy. This view finds support in the Division Bench ruling of this Court in CIT V. Goyal M G Gases (2008) 303 ITR 159. Furthermore, this Court is of the op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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