Commr.Of Income Tax,New Delhi vs M/S Realest Builders & Services Ltd

The Supreme Court addressed the issue of income accrual under the Income Tax Act, specifically under Section 145, determining that income from the sale of property accrued at the time of execution of the sale deed, not at the time of the tripartite agreement. The Court held that the Department failed to demonstrate that the method of accounting used by the assessee resulted in underestimation of profits, thus affirming the High Court's dismissal of the Department's appeal. The Civil Appeal was dismissed, and the Court granted leave in S.L.P.(C) No.23778/2007, dismissing the appeal in accordance with the earlier order.