Jay Chakraborty (Section Officer) (127 Points)
22 May 2010
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 22 May 2010
Sales tax demands, if in any proceedings, held and decided in favour of assessee and the assessee has got the money back, can very well be deemed income of the assessee.
But if the dept. has made further reference to the higher authority wihout actually paying off the amt. to the him, then the asssessee can't deem it as his income.............
But if the case is still subject matter of an appeal, such can't be written off and credited to the accounts as such.!!!!!!!!!!!!
Jay Chakraborty
(Section Officer)
(127 Points)
Replied 23 May 2010
In this case, sales tax authorities have issued demand notice for such amount and yet to be paid or appealed by the Company. Instead of doing so, it has recognized the same as misc. income.
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