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Jt. Cit vs Dinesh Kumar Gupta on 12 August, 2004

It is only a one time technology transfer cost which is to be received by the assessee and is to be assessed only in the year under consideration. Therefore, on merits also the assessee has no case for coming to the conclusion that the entire receipts of US $ 1 million has to be divided into five parts. The case law relied upon by learned AR also do not support the case of the assessee. Coming to the decision in the case of CIT vs. Dinesh Kumar Goyal (supra), the assessee was running an institution for coaching students and the tuition fee was received in advance and it was held that if the entire receipts are treated as income, it would lead to an anomalous situation inasmuch as the expenses which will be incurred in the next year, are to be deducted to arrive at the net income. Here, the assessee has not been able to show that it has to incur or it has incurred any of the expenditures relating to the receipt of US $ 1 million which has been received by the assessee in the shape of one time technology transfer cost.
Income Tax Appellate Tribunal - Delhi Cites 7 - Cited by 19 - Full Document

E. D. Sassoon And Company Ltd vs The Commissioner Of Income-Tax,Bombay ... on 14 May, 1954

In the case of E.D. Sassoon & Co. Ltd. vs. CIT (supra), it was held that the basic concept is that the assessee must have acquired a right to receive the income. According to that principle, in the present case, as the assessee has acquired the right to receive the income, it is to be assessed in the year in which it has acquired the right to receive the income. There is no provision in the agreement according to which it can be said that the right of the assessee to receive the income was restricted in any manner and was related to the year other than the year in which it was to be received by the assessee.
Supreme Court of India Cites 31 - Cited by 1764 - N H Bhagwati - Full Document

Messrs. Calcutta Company Ltd vs The Commissioner Of Income-Tax,West ... on 12 May, 1959

In the case of Calcutta Company Ltd. vs. CIT (supra), it was held that the expression 'profit or gains' has to be understood in its commercial sense and there can be no computation of such profits and gains until the expenditure which is necessary for the purpose of earning receipt is deducted therefrom and it was held that whether the expenditure is actually incurred or the liability in respect thereof has accrued even though it may have to be discharged at some future date. Here, the assessee has not been able to show that what 21 ITA No.288/Del/2011 expenditure is actually incurred or what is the liability in respect thereof as accrued which has to be discharged by the assessee at a future date. The terms of the agreement have already been described in detail in the earlier part of this order and it is not coming out therefrom that the assessee was to incur any expenditure with regard to the impugned receipt or there was any liability which was to be discharged at some future date.
Supreme Court of India Cites 9 - Cited by 404 - N H Bhagwati - Full Document
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