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Judgment
Hemant Gupta, J.—Present appeal u/s 260A of the Income Tax Act, 1961 (for short the ''Act'') arises out of an order passed by Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh on 4.4.2003 for the assessment year 1993-94. The revenue has claimed following substantial question of law:-
Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the amount of Rs. 10,06,692/- retained by the authorities, could not be treated as assessee''s income for the year inspite of fact that income was being assessed on accrual basis?
Respondent-company is engaged in construction work. For the relevant accounting year, the assessee filed its return of income declaring net loss of Rs. 85,57,966/-. The Assessing Officer made additions during the course of assessment which includes disallowance on account of retention money retained by the authority on whose behalf work was carried out, awaiting successful completion of the work. The disallowance ordered by the Assessing Officer was set aside by the Commissioner of Income Tax (Appeals). The said order was affirmed by the Tribunal.
Learned counsel for the assessee relied upon Commissioner of Income Tax Vs. Chanchani Brothers (Contractors) Pvt. Ltd., Commissioner of Income Tax Vs. Simplex Concrete Piles (India) Pvt. Ltd., , The Commissioner of Income Tax Vs. East Coast Constructions and Ind. Ltd., Commissioner of Income Tax Vs. Associated Cables P. Ltd., Commissioner of Income Tax Vs. P and C Constructions (P) Ltd., wherein, it has been held that the right to receive retention money accrues only after the obligations under the contract are fulfilled. Therefore, it will not amount to income of the assessee in the year in which amount is retained.
In view of the consistent view of the different High Courts with which we respectfully agree, we do not find any substantial question of law arises for consideration. Dismissed.