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2012 (5) TMI 215 - AT - Income TaxMercantile method of accounting - Revenue recognition in construction service - AS-7 issued by ICAI and sectin 145 - (i) accrual of income in the case of retention money but TDS deducted including the retention money, year of accrual is the issue and (ii) same way work-in-progress and bills receivable is the other issue. - Decided in favor of assessee by majority decision. The question is whether the Tribunal has power to decide the issues in respect of assessment year which are not before it? In this regard, it is well-settled proposition that the Tribunal has no jurisdiction to give any finding for the earlier or subsequent year while dealing with the particular assessment year. Under the Income-tax Act, each assessment year is a separate unit and the decision of the AO given in a particular year cannot operate as res judicata in the matter of assessment of subsequent years. Similarly the jurisdiction of the Tribunal in the hierarchy created by the same Act is no higher than that of the AO and hence it also should confine to the year of assessment. It is clear that the Tribunal has no power to decide the issue in respect of assessment years which are not before it.
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