Deferred consideration contingent on uncertain future event cannot be taxed before vesting of right to receive

Advertisement Brief of the case: The Hon’ble Bombay High court in the above cited case held that a consideration receivable by the transferor which is contingent on happening of a future event the outcome of which is uncertain and cannot be predicted with a reasonable degree of certainty. Such a consideration cannot be said to have accrued merely on execution of agreement and can be taxed only on the vesting of right on favorable outcome of the event. Facts of the case: The assessee filed here return of income for AY 2006-07 declaring total income of Rs.11,68,470/-. The assessee had...