[aaykarbhavan] Retention money received by a contractor to be taxed in the year of completion of contract

 

Retention money received by a contractor to be taxed in the year of completion of contract

August 13, 2014[2014] 47 taxmann.com 266 (Hyderabad - Trib.)/[2013] 27 ITR(T) 791 (Hyderabad - Trib.)

IT: Where assessee engaged in construction business, received certain amount as retention money, in such a case, irrespective of fact that assessee had adopted mercantile system of accounting, said amount was to be brought to tax in year in which contract was successfully completed

IT: Where assessee paid certain amount towards technical know how to a foreign company, in view of fact that two ingredients for grant of depreciation, viz., ownership and user of asset, were clearly fulfilled, assessee was entitled to claim depreciation on payment in question

IT : Expenditure incurred by assessee representing repayment of principle of assets taken on finance lease was an expenditure of capital nature which was not eligible for deduction under section 37(1)

IT: Where assessee made provision for warranty, it being in nature of unascertained liability, could not be allowed as deduction under section 37(1)

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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