The assessee is in the business of promoter and developer \u00a0of land. It sold \u00a0the land under \u00a0a memorandum of understanding (MOU) for a consideration of 120 crores. The assessee offered only Rs 100 crores for tax in the year 2012-13 \u00a0as the MOU provided that a sum of Rs 20 Crores would be paid by the purchaser on execution of sale deed after getting plan sanctioned and on inclusion of the name of the purchaser in the 7\/12 extract .However\u00a0 the AO taxed entire sum of Rs 120 crores in the assessment year 2012-13 only . On appeal CIT(A) also confirmed the order of the AO . On further appeal the Tribunal deleted the addition \u00a0following the ratio in Morvi Industries \u00a0Ltd v. CIT (1971) 82 ITR 835 (SC) . \u00a0\u00a0On appeal by the revenue \u00a0\u00a0dismissing the appeal of the \u00a0Court held that , the income accrues only when it becomes \u00a0due \u00a0when the other party accepts the liability to pay.\u00a0 Followed\u00a0 CIT v Shoorji Vallabdas & Co (1962) 46 ITR 144 (SC) , the Court also referred CIT v. Nagri Mills Co .Ltd (1958) 33 ITR 681 (Bom) (HC)\u00a0 wherein the High Court held that when the tax rate is the same the department should not fritter away the energies in fighting matters . ( ITA No 306\/Pun\/ 2015 dt 9-02 -2017) (AY. 2012 -13) ( ITA No 1345 of 2017 dt 18 -11-2019)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 5 : Scope of total income -Accrual- Year of taxability -Income accrues only when it becomes due \u2013 When the other party accepts the liability to pay the amount .[ 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":[1],"tags":[],"class_list":["post-9359","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2qX","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9359","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=9359"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9359\/revisions"}],"predecessor-version":[{"id":20096,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9359\/revisions\/20096"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=9359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=9359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=9359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}