2019 (4) TMI 1179

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... iew of Assessing Officer would lead to contradictions, since the assessee s income would be based on two different methodologies. First would be income arising out of computation on the basis of regular methodology and the second would be in relation to the income on receipt basis. The tribunal therefore accepted that the declaration of the assessee in the returns filed post search, to avoid such contradictions the income had to be recognized as per the assessee s regular methodology. No question of law therefore arises. Deletion of the protective assessment - Since substantive assessment was confirmed and the benefit of telescoping granted by the CIT Appeals which was confirmed by the tribunal. Both issues are based entirely on facts. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... l submissions. The short point involved before us relates to the year of taxability of the undisclosed receipts of business found during the course of search. Section 4 of the Act prescribes charge of income tax on the total income of the previous year of an assessee and section 5 of the Act postulates the scope of such total income. Notably, the income chargeable under the head 'profits and gains of business or profession' is liable to be computed in accordance with method of accounting prescribed under section 145 of the Act. Therefore, the income chargeable to tax for any particular assessment year under the head 'profits and gains of business or profession' is computed as per the methodology of accounting prescribed in s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... undisclosed receipts, as has been accepted by the Revenue in the regular assessments. No doubt, at the time of search assessee offered income from such undisclosed receipts in the respective years of receipt, which was a departure from the regular methodology of computing, income accepted by the Revenue. Notwithstanding the aforesaid, in the returns of income filed in response to the notices issued under section 153A of the Act for the captioned assessment years, the assessee company declared income from such undisclosed receipts as per the regular methodology accepted by the Revenue in the regular assessments. The stand of the Assessing Officer, in our view, leads to an inherent contradiction in the final assessment because the resultant .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X