Therefore, it cannot be said that the income had accrued and the right to receive money had not come into existence before actual receipt of the money takes place and, therefore, such sum cannot be taxed. Admittedly, in the present case, the contention of the appellant that work in respect of which the advance money was received, was not executed remains un-rebutted by the Department. Even in the cash system of accounting, every receipt cannot be taxed unless the receipt is of money is on account of accrual of income. Admittedly, the appellant firm had been following the cash system of accounting.

The appellant had claimed the credit for TDS on such receipt, however, had not offered advance money to tax.

It is an admitted fact that in the present case the appellant firm had received advance of Rs.38,88,745/- from one Siddhashila Developers on which TDS had been deducted. 26AS and reflected in the Profit & Loss Account. The issue in the present appeal relates to the taxability of difference of amounts shown in the Form No.

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