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TMI Blog2019 (3) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... as an unexplained investment; since it was neither. The source was clear and there was proper explanation for the amounts as seen from the books of accounts. We are also of the opinion that under the Income tax Act, the proposal is essentially to assess a particular amount, as income, which the assessee has not reckoned as such in its return. To propose under one head of income and in scrutiny or a reassessment to finalise under another head is perfectly permissible. Whether there was any possibility of it being recovered - If the recovery had been barred by limitation, necessarily, it has to be treated as an income from the business and the same had to be assessed under the Income Tax Act as has been held in T.V. Sundaram Iyengar and Sons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant previous year. X X X X Extracts X X X X X X X X Extracts X X X X ..... credit, was the specific finding. The First Appellate Authority deleted the income from taxation. The revenue was before the Tribunal which confirmed the order of the lower authorities. 6. Sri. Jose Joseph, learned Standing Counsel for the Department would submit that by the time assessment was made, the remedy of the other company for claiming the aforesaid amounts was barred by limitation. The assessee could not also prefer any explanation, as to why the amounts were not returned and how it remains as a liability of the assessee company. In such circumstances, it was added as an income; which is permissible going by the decision in Commissioner of Income Tax v. T.V. Sundaram Iyengar and Sons Ltd .[1996(222) ITR 345 (SC)]. 7. Smt. S.Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since it was neither. The source was clear and there was proper explanation for the amounts as seen from the books of accounts. We are also of the opinion that under the Incometax Act, the proposal is essentially to assess a particular amount, as income, which the assessee has not reckoned as such in its return. To propose under one head of income and in scrutiny or a reassessment to finalise under another head is perfectly permissible. 10. The further question is whether there was any possibility of it being recovered. If the recovery had been barred by limitation, necessarily, it has to be treated as an income from the business and the same had to be assessed under the Income Tax Act as has been held in T.V. Sundaram Iyengar and Sons Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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