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In the light of the Patna High Court ruling in the case of H.P. Biswas &Co. v. CIT (105TAX469) it may be possible to defer tax payment in respect of incomes provided in the books of account but held under dispute. In this case the assessee had made a claim for a work done in the course of carrying the business of civil construction. The matter went into arbitration and the assessee returned the entire amount received on the basis of an award in the year of ultimate receipt. The assessee contended that since the claim was under dispute no income could be said to have accrued at any time till the award was given. Following the Supreme Court ruling in CIT v. Hindustan Housing & Development Trust Ltd. (161ITR524) the Court held in favour of the assessee. In that case the compensation could not be made liable to tax until final adjudication. The Allhabad High Court in CIT v. Amrit Cold Storage (229ITR641) also took the same view in the context of an assessee who collected certain cold storage charges but kept them in reserve account pending ruling of High Court on the petition against ordinance desiring such collection.

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