Retention money received, after TDS, but subject to bank guarantee, is not chargeable to tax as income till all conditions are satisfied

Amarshiv Construction Pvt. Ltd vs. DCIT (Gujarat High Court)

Retention money received, after TDS, but subject to bank guarantee, is not chargeable to tax as income till all conditions are satisfied

Mere receipt of income is not the sole test of chargeability. Receipt of income refers to the first occasion when the recipient gets the money under his own control. The words “accrue” or “arises” do
not mean actual receipt of profits or gains. Both these words are used in contradistinction to the word “receive” and include a right to receive. Thus, if an assessee acquires a right to receive the income, the income can be said to accrue to him though it may be received later on