Income Tax Not Applicable on Interim Court-Ordered Deposit Due to Lack of Finality: Telangana HC

G.H. Reddy & Associates (Construction) Pvt. Ltd Vs ITO (Telangana High Court) The appeal before the Telangana High Court challenged the order of the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench, which had held that a sum of ₹3 crores received by the assessee pursuant to an interim court order was taxable as income in the year of receipt. The assessee had been awarded a work contract for construction of a canal. During execution, disputes arose between the parties, leading the assessee to initiate arbitration proceedings. The arbitrator allowed the claim in favour of the assessee...