Accrual of income - Revenue recognition - real or hypothetical ...

Assessee Avoids Tax on Uncertain Wheeling Charges Revenue Citing Accounting Standard-9; Income Not Recognized or Realizable.

November 6, 2020

Case Laws Income Tax HC

Accrual of income - Revenue recognition - real or hypothetical income - The assessee did not raise any demand on account of wheeling charges and since, there was uncertainty with regard to recovery / collection of the outstanding amount, the assessee for the AY in question decided not to recognize revenue for wheeling charges - Income did not accrue to the assessee but was a hypothetical income, which could not have been subjected to tax and in view of Accounting Standard-9 - HC

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Accrual of income - Revenue recognition - real or hypothetical ...

Assessee Avoids Tax on Uncertain Wheeling Charges Revenue Citing Accounting Standard-9; Income Not Recognized or Realizable.

November 6, 2020

Case Laws Income Tax HC

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