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 .
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.
CAclubindia
