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The Tax Publishers Bechtel International Inc. v. DDIT [ITA Nos. 39, 650/Mum/2007, Cross Objection No. 122/Mum/2007, dt. 30-10-2015] : 2015 TaxPub(DT) 5173 (Mum-Trib) Compensation when accruing Facts: Assessee was one of the consortium players in the Dhabol Power Project which went bankrupt following Enron collapse. Thus compensation was claimed by the assessee for contract completion and de-mobilization. The amounts were reported in the Profit and Loss account but were not offered to tax. The assessing officer taxed the whole completion amount and the de-mobilization compensation, the Commissioner (Appeals) taxed the completion cost and did not tax the demobilization compensation claimed. On further appeal: Held in favour of the assessee that the whole compensation was not taxable as there was no confirmation of recoverability of both amounts.
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