Retention Money Taxable Only After Right to Receive Crystallises: Calcutta HC

PCIT Vs EMC Limited (Calcutta High Court)

The Calcutta High Court dismissed the Revenue’s appeal filed under Section 260A of the Income-tax Act, 1961, affirming the order of the Income Tax Appellate Tribunal for Assessment Year 2014–15. The central issue was whether retention money amounting to ₹142.53 crore constituted taxable income in the relevant year merely because it was credited by principal contractors and tax was deducted at source under Section 194C.

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