Retention money taxable as when the right to receive the same accrues

The fact of the case was identical in the two assessment year. The assessee was a civil contractor. In the computation of income the assessee deducted from the net profit the amount of retention money deducted from the bills and filed its return of income.

The assessee was involved in power sector contracts and as per the terms and conditions of such work contract, an amount of 5 to 10% is used to deducted from the bills raised as retention money which would be payable to the assessee after successful completion of the commissioning of the project. The Ld. Counsel of the assessee fur

Please become a Premium member. If you are already a Premium member, login here to access the full content.