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2014 (6) TMI 358 - AT - Income TaxMethod of accounting of income in respect of DDBs/NCD - Use of Cash System instead of Mercantile system hybrid method of accounting - Held that:- Following Smt Punitaben K. Patel, Shri Karsanbhai K. Patel, Shri Hiren K. Patel Versus ACIT, CC-1(1), Ahmedabad [2014 (6) TMI 352 - ITAT AHMEDABAD] - The method of accounting being followed by the assessee is cash and not mercantile - As per sub-section (1) of Section 145, the assessee can follow either cash or mercantile system of accounting regularly in respect of determination of income chargeable under the head 'profits & gains of the business and profession' or 'income from other sources' - the assessee can very much follow cash method of accounting for the purpose of declaring income in respect of DDBs/NCD if the assessee is regularly following cash method of accounting - No Board's circular can override the provisions of the Act and the Board's circular is not an accounting standard notified by the Central Government in the official gazette as required u/s 145(2) of the Income tax Act, 1961 to make out an exception in respect of Section 145(1) - the assessee is following cash method of accounting - the income of the assessee cannot be assessed on the basis of hybrid method of accounting by following mercantile method for assessing income in respect of DDBs/NCD and the remaining income on the basis of cash method of accounting Decided against Revenue. Disallowance of LTCG Held that:- No details are available on record with respect to the land like date of purchase its purchase price, its sale price and other relevant details required for the purpose of computation of capital gain - there is no finding on these aspects either by AO or CIT(A) thus, the matter is required to be remitted back to the AO for fresh adjudication Decided in favour of Revenue. Estimation of income from house property - Held that:- the CIT(A) held that in the absence of any substantive addition, the estimated addition on house property income cannot be accepted - during the course of assessment proceedings before A.O. the necessary details with respect to the house property was not furnished by the Assessee and therefore the AO proceeded to decide the matter on the basis of material available with him thus, the matter is required to be remitted back to the AO for fresh adjudication Decided in favour of Revenue.
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