24 February 2014
one of my friend having dispute with the debtor is to received amount under decree (as per order of court) is it taxable under income tax? in the earlier year it was not recognized in books of accounts.
24 February 2014
you mean to say the debtor was recognised debtors and then as the same turned bad, it was written off in the books and now as per the decree we would be receiving that money.
if my understanding is correct, then the money so received will be taxable as the same wasnt charged to tax at any point of time.
please let know if the facts of the case and my understanding differ.
24 February 2014
or incase , which could be a little absurd, if the debtor was not recorded only in the books, then it would definitely be charged to tax.
CAclubindia
