9911796707
TMI BlogAccrual of income - Scope of ICDS - If there is conflict between Section 5 and Section 145, which would prevailX X X X Extracts X X X X X X X X Extracts X X X X ..... hat: "So it is clear that there can be cases of non-residents to whom s. 5(2)(a) will never apply in regard to a particular income. The question then is, whether in such circumstances the assessee concerned (non-resident to whom income had accrued in India) can insist that, since he has kept his accounts in regard to that income on the cash basis, he is not liable to be taxed on the accrual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the provisions of s. 5(2)(b), though by merely looking at the wording of s. 145(1) it may appear that in all cases the method of accounting must be followed, unless in any case where the accounts are correct, but the method is such that, in the opinion of the ITO, the income cannot properly be deduced therefrom. But, it must be remembered that s. 145 is only a machinery provision and cannot qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he charge and the provisions of s. 5(2)(b)." Assessee took the matter before the Supreme Court. Honorable Apex Court in [1993 (2) TMI 9 - SUPREME Court] has held that: " The assessee was assessed as the statutory agent of the non-resident company. The Income-tax Officer assessed the amounts credited in the accounts of the assessee as the income of the non-resident company. The content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot; On the issue of conflict between section 5 and Section 145, Apex Court (supra) has observed that: "In the circumstances, we do not think it necessary to express any opinion on the question whether there is any conflict or inconsistency between section 5(2) and section 145 of the Act nor is it necessary to express ourselves on the view expressed by the High Court that, in the case of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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