The case pertains to the treatment of income received from an arbitral award in the assessment year. The...

The case pertains to the treatment of income received from an arbitral award in the assessment year. The AO passed an assessment order u/s 143(3) after the case was selected for scrutiny through CASS. The ITAT recorded that the AO issued a statutory notice u/s 142(1) with a specific query about the Nardana Claim-1 & Nardana Claim-2, and the assessee filed a cogent reply. The AO's approach in accepting the assessee's explanation regarding the recognition of liability for Nardana Claim-1 & Nardana Claim-2 as income in the AY 2018-19 was found sustainable. The amount was paid to the assessee in AY 2018-19 after furnishing a 100% bank guarantee on 100% margin, and it was rightly shown as a liability in the balance sheet. The income was shown in..... .....

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