Tribunal held that the Assessing Officer did not bring on record any cogent documentary evidence or material to support his findings that in terms of any legally enforceable award or decree of the court or arbitral tribunal, the assessee had acquired any vested right to receive such interest. The CFO of the assessee had unilaterally made calculations of expected interest without there being a demand from the assessee. Accordingly, since no real income had accrued or was received in the relevant year, the interest computed and added by the Assessing Officer on mercantile basis could not be brought to tax in the hands of the assessee. Before imposing tax on any sum it is necessary for the Department to establish that the income assessable is real income which legally accrued during the relevant year. Unless, in fact, an assessee earns income in the real sense there cannot be charge of tax. (AY. 2013-14 to 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 5 : Scope of total income Accrual of income-Dispute in project work and reconciliation-Award of Interest-Not enforceable award or decree-Not acquiring any vested right to receive interest-Notional amount not assessable. [S. 4, 145]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-17882","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-4Eq","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/17882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=17882"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/17882\/revisions"}],"predecessor-version":[{"id":17883,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/17882\/revisions\/17883"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=17882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=17882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=17882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}