COMMISSIONER OF INCOME TAX Vs. SHANKARANARAYAN CONSTRUCTION CO

JUDGEMENT

(1.) THE question referred to us under the provisions of the Income-tax Act, 1961, reads thus :

(2.) ON the face of it, the assumption that the amount referred to in the above question was on account of excess measurement and was treated as a deposit and not as income looks to be a finding of fact. However, learned counsel for the Revenue seriously challenged this assumption of ours and contended that the assessee had been maintaining cash system of accounting and, therefore, whatever amount was received for the work done or purported to have been done, such receipt should be assessed during the year of receipt.

(3.) HENCE, the question referred to us is answered in the affirmative.