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2017 (3) TMI 104 - AT - Income TaxPenalty u/sec. 271(1)(c) - incidence of taxation on account of unaccounted receipts - assessee contended that the income additionally offered by the assessee did not accrue during the two years under consideration - Held that:- There is no dispute with regard to the fact that the assessee is following project completion method for offering income from the building projects. There is also no dispute with regard to the fact that both the building projects, viz., “Sai Radha Paradise” and “Achu Nandana Apartments” have not been completed during the years under consideration, i.e., they have been completed in the year relevant to AY 2008-09. Hence there is merit in the contentions of the Ld A.R, the incidence of taxation on account of unaccounted receipts, if any, shall arise only in AY 2008-09 and not during the years under consideration. It is well established proposition of law that the income pertaining to one year cannot be assessed in another year. We notice that the assessing officer has accepted the additional income offered by the assessee only on the basis of offer made in the statement taken from the partner of the firm u/s 132(4) of the Act, i.e., the assessing officer did not examine the aspect whether the alleged unaccounted receipts are taxable in the two years under consideration. Further he did not also examine the question as to whether the entire amount can be taken as the income of the assessee. It is noticed that the assessee also declared additional income on the strength of the offer made u/s 132(4). Thus we are of the view that the additional income offered by the assessee can be considered as a voluntary offer only and it cannot be considered as an offer made after detection by the revenue. In any case, we notice that the explanation of the assessee was not found to be false in terms of Explanation 1 to sec. 271(1)(c) of the Act. - Decided in favour of assessee
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