9911796707
TMI Blog2014 (8) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the case and law, the additions made by the Learned Assessing Officer and confirmed by the Learned Commissioner of Income Tax (Appeals) are contrary to law and based on erroneous understanding of the facts.' 3. At the time of hearing, the Authorized Representative of the assessee submitted that these grounds of appeal are general in nature and therefore, he is not pressing these grounds. Hence, they are dismissed. 4. Ground no. 3 of the appeal reads as under: On appreciation of the facts and circumstances of the case and law, the Learned Commissioner of Income Tax (Appeals) has erred in confirming the action of Learned Assessing Officer in making addition o the tune of Rs. 35,00,000/- on account of cash settlement of bills even tho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income for Assessment Year 2009-10. It was also submitted that an amount of Rs. 8.22 lakhs related to indirect expenses had not been written in the said hand written page. It was further submitted that in the Financial Year 2009-10 relevant to the Assessment Year 2010-11, the assessee settled the accounts with the parties and earned some cash amounting to Rs. 35 lakhs and that the same was offered as undisclosed income for Assessment Year 2010-11 (81.50 - 38.92 - 8.22) = 34.35. 6. The Assessing Officer, after considering the said explanation of the assessee, observed that the assessee has undertaken the work, raised bills and received payments from APS Packaging during the Financial Year 2008-09. The assessee's claim that it has receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in its regular income for Assessment Year 2009-10. Thus, it is clear that the assessee had not disclosed net profit of Rs. 34,36,146/- i.e. Rs. 35 lakhs as admitted by the assessee in search in the return of income in Assessment Year 2009-10. As the assessee claims amount of Rs. 35 lakhs has been declared in Assessment Year 2010-11 and tax and interest has been paid accordingly on the amount. The assessee's plea that accounts were settled with the parties during the Financial Year 2009-10 relevant to Assessment Year 2010-11 so the income was earned in the accounting period relevant to the Assessment Year 2010-11 cannot be accepted as it is clearly admitted by the assessee in his written submission that the assessee is following mercantile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Assessment Year 2010-11, the same should be deleted during the year under consideration. In the alternative, it was the submission that if the addition made is confirmed during the year under consideration, then a direction may be issued to the Assessing Officer to exclude the income from Assessment Year 2010-11. 9. The Departmental Representative on the other hand supported the orders of lower authorities. 10. We have heard the rival submissions and perused the orders of lower authorities and material available on record. In the instant case, a search and seizure operation was conducted u/s. 132 of the Act on 16.07.2009. During the course of search, loose papers were found which were inventorized as loose paper no. 66 of Annexure BF 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the income in Assessment Year 2010-11 and which has been assessed to tax and therefore the assessment of the said amount of Rs. 35 lakhs would amount to double taxation of the same. 13. The Departmental Representative on the other hand relied on the orders of the lower authorities and submitted that the income of the assessee is to be taxed according to the method of accounting followed by the assessee. Since the assessee is following mercantile system of accounting, therefore the income accrued during the year under consideration should be taxed in this year and not when the accounts were settled with the parties. Hence, the same was rightly taxed in the present year. 14. We find that it is not disputed by the Authorized Representative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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