Retention money cannot be treated as Income till performance of contractual obligations

Retention money is not in the nature of income till such time the contractual obligations are fully performed to the satisfaction of the customer by the Assessee. Therefore the retention money cannot be regarded as income even for the purpose of book profits u/s.115JB of the Act though credited in the profit and loss account and have to be excluded for arriving at the book profits u/s.115JB of the Act.

1. Assessee filed its return of income disclosing the total income as ‘Nil ‘under the norm

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