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TMI Blog2019 (11) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... h the liability to tax is attracted, viz., the accrual of the income or its receipt; but the substance of the matter is the income, if income does not result at all, there cannot be a tax. So also in Morvi Industries Ltd. [1971 (10) TMI 5 - SUPREME COURT ] has held that income accrues when there is a corresponding liability on the other party. In the present facts, in terms of the MOU, there is no liability on the other party to pay the amounts. In any event, the amount of ₹ 20 crore has been offered to tax in the subsequent assessment year and also taxed. In the aforesaid circumstances, the view taken by the Tribunal on facts is a possible view and calls for no interference. In any event the tax on the amount of ₹ 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the purchaser in the 7/12 extract. However, as the Respondent- Assessee was not able to meet the conditions of the MOU during the subject assessment year, a sum of ₹ 20 crore, according to the Respondent, could not be recognized as income for the subject assessment year. The Assessing Officer did not accept the same and held that the entire sum of ₹ 120 crore is taxable in the subject assessment year. 4. In first appeal to the Commissioner of Income Tax (Appeals) [CIT(A)], the stand of the Respondent- Assessee was not accepted. By the order dated 20 July 2015, the CIT(A) dismissed the Respondent s appeal upholding the order of the Assessing Officer. 5. On further appeal, the Tribunal after recording the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ult at all, there cannot be a tax . So also in Morvi Industries Ltd. (supra), the Supreme Court has held that income accrues when there is a corresponding liability on the other party. In the present facts, in terms of the MOU, there is no liability on the other party to pay the amounts. 8. In any event, the amount of ₹ 20 crore has been offered to tax in the subsequent assessment year and also taxed. This Court in the case of C.I.T. v. Nagri Mills Co.Ltd.(1958) 33 ITR 681 (Bom) has observed as follows: 3. We have often wondered why the Income-tax authorities, in a matter such as this where the deduction is obviously a permissible deduction under the Income-tax Act, raise disputes as to the year in which the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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