(1) CIT v. Eicher Ltd.

Tata Realty and Infrastructure Ltd, Mumbai vs. Ast CIT 2(3)(1), Mumbai

…sation of even the principal amount was in jeopardy and, therefore, there could not be said to be any real accrual of income by way of interest. The ld. Counsel has also placed reliance on the decision of the Commissioner of Income Tax Vs. Eicher Ltd. (2010) 320 ITR 410 (Del). The relevant part of the decision is reproduced as under: “Held, dismissing the appeal, that on the basis of the fats on record the Tribunal had rightly held that actual income in fact never accrued to the assessee and the assessee in fact had already paid tax on interest income actually received by it. The Tribunal, therefore rightly del…

Jt CIT(OSD) 2(3)(1), Mumbai vs. M/S Tata Realty and Infrastructure Ltd., Mumbai

…sation of even the principal amount was in jeopardy and, therefore, there could not be said to be any real accrual of income by way of interest. The ld. Counsel has also placed reliance on the decision of the Commissioner of Income Tax Vs. Eicher Ltd. (2010) 320 ITR 410 (Del). The relevant part of the decision is reproduced as under: “Held, dismissing the appeal, that on the basis of the fats on record the Tribunal had rightly held that actual income in fact never accrued to the assessee and the assessee in fact had already paid tax on interest income actually received by it. The Tribunal, therefore rightly del…

ADIT (I.T)-3(2), Mumbai vs. M/S. Bechtel International Inc., Mumbai

In the result, appeal of the revenue is dismissed, whereas appeal of the assessee is allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Sanjay Garg, Jm आमकय अऩीर सं./Ita No.39/Mum/2007 (नििाारण वषा / Assessment Year :2002-2003) Bechtel International Inc., C/O Vs. The Ddit, International Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. आमकय अऩीर सं./Ita No.650/Mum/2007 (नििाारण वषा / Assessment Year :2002-2003) The Adit, International Vs. Bechtel International Inc., C/O Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. Cross Objection No.122/Mum/2007 (Arising Out Of Ita No.650/Mum/2007) (नििाारण वषा / Assessment Year :2002-2003) Bechtel International Inc., C/O Vs. The Acit, International Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. यनधमवरयती की ओर से /Assessee By : Shri Sunil M. Lala & Sh. Varun Sankhesara यमजस्र् की ओर से /Revenue By : Ms. Vandana Sagar

…assessee has to be considered from a realistic and practical point of view. Thus, probability or improbability of realization of the income has to be considered from practical point of view. 11. The Hon’ble Delhi High Court in the case of CIT Vs. Eicher Ltd., 320 ITR 410, held that where claim of Rs.617 lakhs was settled at Rs.480 lakhs after four years of dispute, even in this scenario, it was held by the Hon’ble High Court that only sum of Rs.480 lakhs can be taxed and that too in the year in which it was received. 11 ITA No.39/07, ITA No.650/07 & CO No.122/07 12. There is no dispute to the fact that there was…

M/S. Bechtel International Inc., Usa, Mumbai vs. DDIT (I.T) - 3(2), Mumbai

In the result, appeal of the revenue is dismissed, whereas appeal of the assessee is allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Sanjay Garg, Jm आमकय अऩीर सं./Ita No.39/Mum/2007 (नििाारण वषा / Assessment Year :2002-2003) Bechtel International Inc., C/O Vs. The Ddit, International Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. आमकय अऩीर सं./Ita No.650/Mum/2007 (नििाारण वषा / Assessment Year :2002-2003) The Adit, International Vs. Bechtel International Inc., C/O Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. Cross Objection No.122/Mum/2007 (Arising Out Of Ita No.650/Mum/2007) (नििाारण वषा / Assessment Year :2002-2003) Bechtel International Inc., C/O Vs. The Acit, International Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. यनधमवरयती की ओर से /Assessee By : Shri Sunil M. Lala & Sh. Varun Sankhesara यमजस्र् की ओर से /Revenue By : Ms. Vandana Sagar

…assessee has to be considered from a realistic and practical point of view. Thus, probability or improbability of realization of the income has to be considered from practical point of view. 11. The Hon’ble Delhi High Court in the case of CIT Vs. Eicher Ltd., 320 ITR 410, held that where claim of Rs.617 lakhs was settled at Rs.480 lakhs after four years of dispute, even in this scenario, it was held by the Hon’ble High Court that only sum of Rs.480 lakhs can be taxed and that too in the year in which it was received. 11 ITA No.39/07, ITA No.650/07 & CO No.122/07 12. There is no dispute to the fact that there was…