Advance receipt cannot be taxed without accrual of income

Kritija Construction Vs ITO (ITAT Pune)

The issue in the present appeal relates to the taxability of difference of amounts shown in the Form No. 26AS and reflected in the Profit & Loss Account. It is an admitted fact that in the present case the appellant firm had received advance of Rs.38,88,745/- from one Siddhashila Developers on which TDS had been deducted. The appellant had claimed the credit for TDS on such receipt, however, had not offered advance money to tax. Admittedly, the appellant firm had been following the cash system of accounting. E

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