Retention money is not in the nature of income till the time contractual obligations are performed fully and satisfactory. Therefore though the amount is credited to the Profit and loss account for the purpose of book profit of the company same is not liable to be included . (AY . 2006 – 2007 to 2008-2009)
Dy.CIT v. Mcnally Bharat Engineering Co. Ltd. (2018) 191 TTJ 822 (Kol.)(Trib.)
S. 115JB :Book profits- Retention money cannot be treated as income for purpose of book profit though the amount is credited in the P& Loss account .[S.2(24) ]