Income tax Liable on Disputed Income ?
This query is : Resolved
AAKASH CHHABRIA
(Querist)
15 September 2021
Dear Sir ,
we have booked sale of x amount in a year and also received pymts for the same . But the same is now in court as some dispute has arrived on the sale transaction . in a scenario we may have to return the sale proceeds also , if we loose the case . But the case proceedings may take years .
hence want to know , if we are liable for paying income tax on the Sale income or can we make provisioning of the same , citing case reference .
can we make some percentage provisioning ?
pl call back asap... advise .
thx
we have booked sale of x amount in a year and also received pymts for the same . But the same is now in court as some dispute has arrived on the sale transaction . in a scenario we may have to return the sale proceeds also , if we loose the case . But the case proceedings may take years .
hence want to know , if we are liable for paying income tax on the Sale income or can we make provisioning of the same , citing case reference .
can we make some percentage provisioning ?
pl call back asap... advise .
thx
CA R SEETHARAMAN
(Expert)
15 September 2021
Sales made and amount received. Provisioning not allowed.
In case of return of sale proceeds, reduce the sale in the year of return based on court decision.
In case of return of sale proceeds, reduce the sale in the year of return based on court decision.
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