Tax cannot be levied on an amount wrongly paid to a person because of a mistake made by the payer – ITAT Mumbai

Advertisement DCIT Vs Tata Investment Corporation Ltd. (ITAT Mumbai)- All income cannot be taxed, but only those incomes on which the taxpayer has a legitimate and enforceable right is liable to tax, the ITAT held. According to ITAT order, taxmen do not have the right to tax any receipts as the law is well settled that all receipts are not income, only those receipts with the character of income can be assessed to tax. The ITAT held that income can be considered “accrued” only when the taxpayer has a right to receive the income. Without a legally enforceable right, there cannot...