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TMI Blog2024 (10) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... O's approach in accepting the explanation furnished by the assessee to him was not found unsustainable view as the liability of Nardana Claim - I Nardana Claim - 2 could have been recognized as income in the AY 2018 -19. The amount was paid to the assessee in the Assessment Year - 2018 - 19 after furnishing 100% bank guarantee on 100% margin, therefore, same was rightly shown as liability in the balance-sheet. It is not a case that the assessee has concealed the income of receipt by way of award. After the order passed by the Dhule Court in favour of the assessee on 15.10.2018, the income was shown in the next assessment year i.e. 2019 - 20. ITAT did not find any fault in the approach of assessee, in view of the law laid down in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... selected for scrutiny through CASS, and thereafter, the Assessing Officer passed an order of assessment under Section 143(3) of the Income Tax Act on 26.02.2021, wherein total income of Rs. 7,93,26,310/- was assessed. 2.2. Thereafter, learned PCIT examined the record of the assessment proceedings and viewed that the assessment order passed by the Assessing Officer is erroneous in so far as it is prejudicial to the interest of revenue and took up the matter under the revisional jurisdiction under Section 263 of the Income Tax Act by issuing a show-cause notice dated 14.03.2023. In the show-cause notice it is mentioned that the liability shown in Note No.7 of the Audited balance-sheet of Rs. 29.03 crore Rs. 3.52 crore termed as Nardana Claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment Year - 2018 - 19 is erroneous and set aside the same and remanded by the matter to the Assessing Officer for re-examination. 2.5. Being aggrieved by the aforesaid order, the respondent/assessee preferred an appeal before the ITAT, Indore Bench i.e. ITA No.174/Ind/2023. Vide order dated 12.01.2024, the learned ITAT has set aside the revisional order. Hence, the present appeal is before this Court proposing following substantial questions of law:- (1) Whether, the ITAT was justified in law in allowing appeal of the assessee without appreciating the findings of the Pr. CIT in his Order U/s 263 ? (2) Whether, the ITAT was justified in law in not considering various judgments relied in the Order U/s 263 and clarifying the utilization of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity in the balance-sheet. It is not a case that the assessee has concealed the income of receipt by way of award. After the order passed by the Dhule Court in favour of the assessee on 15.10.2018, the income was shown in the next assessment year i.e. 2019 - 20. 05. The learned ITAT did not find any fault in the approach of assessee, in view of the law laid down by the Apex Court in the case of CIT v/s Hindustan Housing Land Development Trust Limited reported in (1986) 161 ITR 524 (SC), in which the Apex Court has held that as long as there remains a dispute / litigation, the income cannot be said to have 'accrued' or 'arisen' to the assessee. The approach of the assessee as well as the view taken by the Assessing Officer is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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