Tribunal remands case for reassessment and hearing, requiring fresh decision due to lack of evidence.

The Tribunal allowed the appeal for statistical purposes and remanded the issue to the Assessing Officer for reevaluation. The Assessing Officer was instructed to provide the assessee with a hearing and make a fresh decision based on the evidence presented, as there was no proof that the work related to the income addition was completed in the relevant assessment year. The decision was rendered on November 27, 2013.

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Issues:
Confirmation of addition of Rs. 10,00,000 on the ground of cash method of accounting.

Analysis:
The assessee, a story and screen play writer, appealed against the addition of Rs. 10,00,000 to his income for the assessment year 2008-09, following the order of the Commissioner of Income-tax (Appeals). The Assessing Officer contended that the amount should be considered as income as per the cash method of accounting. The assessee received the amount as an advance from a company for the purchase of negative rights of a film. The Assessing Officer added the amount to the assessee's income, rejecting the explanation provided. The first appellate authority upheld the decision. The Tribunal observed that the amount was received as an advance in the assessment year 2005-06, and even under the cash system of accounting, it should be considered as income in the year the work was performed. As there was no evidence that the work was completed in the assessment year 2008-09, the Tribunal set aside the issue to the Assessing Officer for further consideration. The Assessing Officer was directed to allow the assessee a hearing and decide the issue afresh based on the evidence provided.

The Tribunal concluded that the appeal was allowed for statistical purposes, and the issue was restored to the Assessing Officer for a fresh decision. The order was pronounced on November 27, 2013.

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