Description:
All income cannot be taxed, but only those incomes on which the taxpayer has a legitimate and enforceable right is liable to tax, ITAT held, According to ITAT order, taxmen do not have the right to tax any receipts as the law is well settled that all receipts are not income, only those receipts with the character of income can be assessed to tax. The ITAT held that income can be considered “accrued” only when the taxpayer has a right to receive the income. Without a legally enforceable right, there cannot be an accrual of income.
Source:
1. www.tpcc.in
2. The Tax Referencer .Volume120. Issue No.8, 22 August 2011, Page No.16.
3. www.economictimes.com, dt.5-8-2011.
Our comment:
Only the Income is taxable whether it is received or not. Right to receive is the main criteria to levy tax.
