Spread of income: concealed income may be allocated to earlier years but requires board approval beyond prescribed temporal limits. Concealed income appearing in accounts is ordinarily taxed in the year of appearance but may be spread over to earlier years when evidence indicates earlier earning; ordinary spreads are confined to a short multi year period, longer spreads require sufficient material showing earlier earning, and any spread beyond the longer prescribed temporal limit must have prior board approval to prevent assessable income from escaping assessment.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Spread of income: concealed income may be allocated to earlier years but requires board approval beyond prescribed temporal limits.
Concealed income appearing in accounts is ordinarily taxed in the year of appearance but may be spread over to earlier years when evidence indicates earlier earning; ordinary spreads are confined to a short multi year period, longer spreads require sufficient material showing earlier earning, and any spread beyond the longer prescribed temporal limit must have prior board approval to prevent assessable income from escaping assessment.
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