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Genre Exports Private Limited vs. ITO (ITAT Mumbai)

COURT:
CORAM: ,
SECTION(S): ,
GENRE:
CATCH WORDS:
COUNSEL:
DATE: February 18, 2015 (Date of pronouncement)
DATE: March 16, 2015 (Date of publication)
AY: 2003-04
FILE: Click here to download the file in pdf format
CITATION:
Applying commonsense approach, unclaimed liabilities are assessable as income even if not credited to P&L A/c

If an amount is received in course of trading transaction, even though it is not taxable in the year of receipt as being of revenue character, the amount changes its character when the amount becomes the assessee’s own money because of limitation or by any other statutory or contractual right. When such a thing happens, commonsense demands that the amount should be treated as income of the assessee. Fact that amount is not credited to the P&L A/c & is shown as a liability makes no difference if creditor has written off the debt (CIT V/s T V Sundaram Iyengar and Sons Ltd 222 ITR 344 (SC) followed)

One comment on “Genre Exports Private Limited vs. ITO (ITAT Mumbai)
  1. sher singh says:

    Horrible Orders on same issue, be this order or Bharat Dana Bera, both on 41. This is the reason people take adjournments before certain members. Admittedly, there are orders on both the sides by Mumbai Bench, Matter must have to be sent to special bench.

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