Income

Grant and interest received thereon from Government by Society for implementation of various scheme cannot be considered its income merely because entire amount is shown as income in the profit and loss account when society has no discretion to utilise the amount as per own requirements and in case of non-utilisation, the funds are to be refunded along with interest to the Government — as held by PHHC in CIT v State Urban Development Society — In favour of: The assessee.

Decided on: 19 October 2011.

Advances received from the customers on under prepaid calling services, SIM process fees and recharge fee cannot be recognised as a revenue receipt at the time of receipts — as held by DelTrib in BTA Cellcom Limited v Income Tax Officer — In favour of: The assessee.

Debt — If services are to be rendered for a future period, then the amount received by an assessee cannot be said to be debt due.

Decided on: 30 June 2011.