SEARCH AND SEIZURE

[Eswara Rama Somayajulu]

Income disclosed during the search and seizure under section 132(4) can be brought into books of account subsequently and can be capitalized ?

[DR.MARIAPPAN GOVINDARAJAN]

In my view it can be brought into books of accounts since the same were disclosed and taxes have been paid for the same. If any alternative answer is got by you from any source please share the same in this forum.

AI Summary

Disclosure under section 132(4) permits income to be recorded in books and capitalized when disclosed and taxed. Income disclosed during a search and seizure may be recorded in the taxpayer's books and treated as capitalized provided the disclosure was made during the search process and applicable taxes have been paid, making such book entry and capitalization permissible as a matter of compliance.