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TMI Blog2017 (3) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... e is merit in the contentions of the Ld A.R, the incidence of taxation on account of unaccounted receipts, if any, shall arise only in AY 2008-09 and not during the years under consideration. It is well established proposition of law that the income pertaining to one year cannot be assessed in another year. We notice that the assessing officer has accepted the additional income offered by the assessee only on the basis of offer made in the statement taken from the partner of the firm u/s 132(4) of the Act, i.e., the assessing officer did not examine the aspect whether the alleged unaccounted receipts are taxable in the two years under consideration. Further he did not also examine the question as to whether the entire amount can be take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of survey action, loose papers were found and impounded. Those documents revealed that the assessee has received a sum of Rs. 6 lakhs in aggregate on 29.11.2005 and on 41.1.2006 by way of cash on sale of a flat in the building named Sai Radha Paradise , i.e., during the year relevant to assessment year 2006-07. Documents also revealed that the assessee has received payments by way of cash in respect of another project named Achu Nandana Apartment . Aggregate amount of cash received in respect of this project on 14.7.2007 was Rs. 61,11,550/- which included unaccounted amount of Rs. 60,60,800/-, i.e. during the year relevant to AY 2007-08. Loose papers also revealed that the partner of the assessee has received a sum of Rs. 7,70,000/- b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the receipts would have bearing only in AY 2008-09 and not in AY 2006-07 and 2007-08. He submitted that it is also established proposition that the entire unaccounted receipt, if any, cannot be taxed, but only the income element therein should be taxed. However, the partner of the assessee, without appreciating these legal positions, has agreed to offer entire amount of ₹ 75.00 lakhs in order to buy peace and to avoid litigation in the statement taken u/s 132(4) of the Act during the course of search conducted in his hands. He submitted that the assessee was subjected to only survey operations u/s 133A of the Act and not subjected to search. He submitted that the assessing officer should have initiated proceedings u/s 153C of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... search. The assessee has come forward to admit the additional income after the search/survey operations and hence the Ld CIT(A) has rightly confirmed the penalty levied in both the years as the offer of additional income was not voluntary, but the same was made after its detection by the revenue. 9. We have heard rival contentions and perused the record. There is no dispute with regard to the fact that the assessee is following project completion method for offering income from the building projects. There is also no dispute with regard to the fact that both the building projects, viz., Sai Radha Paradise and Achu Nandana Apartments have not been completed during the years under consideration, i.e., they have been completed in the ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y on the basis of offer made in the statement taken from the partner of the firm u/s 132(4) of the Act, i.e., the assessing officer did not examine the aspect whether the alleged unaccounted receipts are taxable in the two years under consideration. Further he did not also examine the question as to whether the entire amount can be taken as the income of the assessee. It is noticed that the assessee also declared additional income on the strength of the offer made u/s 132(4) of the Act. Under these set of facts, we are of the view that the additional income offered by the assessee can be considered as a voluntary offer only and it cannot be considered as an offer made after detection by the revenue. In any case, we notice that the explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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