9911796707
TMI Blog2016 (12) TMI 1842X X X X Extracts X X X X X X X X Extracts X X X X ..... us in the sense that the third party - RPCL - which was awarded the contract claimed that it had performed it in accordance with the agreement with the parties. The assessee, however, felt otherwise and terminated the contract. There could be several likely outcomes in these proceedings many of them possibility impinging upon the rights of the assessee to receive advance amount itself along with i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as income. 2. The facts are that the assessee had awarded a contract to M/s. RPCL (hereinafter 'RPCL'). It had, as part of the agreement, paid to RPCL a mobilization advance. The question before this Court is with regard to interest accrued upon such mobilization advance. Apparently, the RPCL claimed that it completed the contract, the assessee, however, disputed that position and terminated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been following a system of accounting as per which all items of income and expenditure are treated as accrued only after the approval is granted by competent authority. This system has been followed consistently in respect of both income and expenditure items which has not been disputed by the Revenue in any of the preceding years. Therefore, we are of the considered opinion that the addition con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greement with the parties. The assessee, however, felt otherwise and terminated the contract. There could be several likely outcomes in these proceedings - many of them possibility impinging upon the rights of the assessee to receive advance amount itself along with interest either in whole or in part. In these circumstances, the ITAT's conclusions that there was no crystallized right to receive a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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