Issue The appellant recognized revenue only in the year in which the plots were sold and registration of conveyance deed. The Assessing Officer is of the view that the revenue should be recognized at every stage of receipt sale consideration Held he provisions of section 2(47) of the Act have no application to the transactions… Read More »
Question whether the Income Tax Officer was justified in refusing to permit the assessees switching over from the cash to the mercantile system during the midst of the financial year ? Held A switch over in the midst of an accounting year, especially in such cases, could lead to skewed results. An assessee could then… Read More »
When can the Assessing Officer Reject the books of Accounts of the Assessee under Income Tax Act 1961? As per Section 145(3) Where the Assessing Officer is not satisfied about the correctness or completeness of the accounts of the assessee, or where the method of accounting provided in sub-section (1) has not been regularly followed by… Read More »
Facts of the Case Assessee was a non-banking company entered into a lease agreement with its customers. One of clauses in agreement provided for if monthly instalments(EMI) were not paid, it would carry additional finance charges(AFC) or overdue charges in prescribed rate .Assessee maintained its accounts with respect to AFC charges under cash/receipt system for… Read More »
Where a civil contractor did not produce salary and wage register and other evidences in support of expenses incurred, Assessing Officer was justified in estimating profit at 8 per cent of gross contract receipts under section 44AD IN THE ITAT CUTTACK BENCH Ram Prasad Bhatta v. Assistant Commissioner of Income-tax, Berhampur Circle, Berhampur P.K. BANSAL,… Read More »
Where Assessing Officer proceeded to calculate agricultural income on basis of agricultural income declared by assessee for assessment year 1998-99 instead of assessment year 2001-02 which was a closer assessment year and made addition, same was to be deleted HIGH COURT OF KARNATAKA S.L. Basavaraj (HUF) v. Assistant Commissioner of Income-tax, Circle-1, Shimoga VINEET SARAN… Read More »
Where lease equalisation fund was a mere book entry made to comply with Guidance Note issued by ICAI so as to meet Accounting Standards, assessee was justified in reducing amount credited in profit & loss account for purposes of determining income chargeable to tax HIGH COURT OF BOMBAY Commissioner of Income-tax -3 v. Reliance Industrial… Read More »