Income tax is only applicable on actual received income, not hypothetical claims; income cannot accrue if there is uncertainty with realization due to existing disputes.

ORDER

PER SUDHIR KUMAR: JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-27, New Delhi [hereinafter referred to as “CIT(A)”] vide order dated14.09.2016 pertaining to assessment year 2011-12arises out of the assessment order dated31.03.2014 under Section 143 (3)of the Income Tax Act 1961 [hereinafter referred as ‘the Act’].

2. The assessee has raised the following grounds of appeal:-

1. On the facts and under the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition made on account of disallowance of Employee Remuneration at Rs.1,63,22,729/- made by the AO without appreciating the facts that the assessee has not proved the identity of the employees on the remuneration paid to them.

2. On the facts and under the circumstances of the case the Ld. CIT(A) has erred in law in deleting the addition made on account of Amount accrued but not received from M/s. SIS Live U/s. 5 (1)(b) at Rs.63,41,25,805/- without appreciating the facts that since the assessee company follow the accrual method of accounting and is bound and is bound to include the revenue accrued during the year of business.

3. On the facts and under the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition made on account of disallowance of Professional Fees at Rs.9,30,97,866/- made by the AO without appreciating the facts that none of the recipients has confirmed the receipts as claimed by the assessee company and in majority of cases TDS u/s. 195 were not deducted by the assessee before making payment.

3. The brief facts of the case are that the assessee company is engaged in providing video production services and during the relevant assessment year had undertaken contract with SIS Live for production and coverage facilities and services under SIS assignment for Commonwealth Games 2010. The assessee company had filed its return of income for A.Y.2011-12 on 30.09.2011 declaring total income at Rs.15,63,41,130/-. The case of assessee was taken up for scrutiny. A notice u/s 143(2) of the Act was issued on 11-12-2012. Again notice u/s 142(1) of the Act along with questionnaire was issued. The assessing officer has completed the assessment and made the following additions as under:

4. Aggrieved by the impugned order, the assessee Company has filed the appeal before the Ld CIT(A), who vide his order 14-09-2016 partly allowed the appeal and additions made by assessing in serial Number 1,2,3,6,7,9,10,12 shown in the above table were deleted and serial number 5,8, and 11 were confirmed.

5. Aggrieved the order of the Ld CIT(A) the revenue