TaxTMI 
TaxTMI 
2008 (1) TMI 907
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....n B. Lokur, J. - The revenue is aggrieved by an order dated 24-2-2006 passed by the Income-tax Appellate Tribunal ('the Tribunal'), Delhi Bench 'B' in ITA No. 3244 (Delhi)/2001 relevant for the assessment year 1995-96. 2. The only question that has been considered by the Tribunal is with regard to re-opening the assessment in respect of the assessee under section 147/148 of the Income-tax Act, 19....
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....ncome-tax Act, 1961 income under the head 'Profits and gains of business or profession' is computed in accordance with the method of accounting regularly employed by the assessee. Where the assessee follows mercantile system of accounting, the profits are worded out on due or accrual basis, i.e., after providing for all expenses for which a legal liability has arisen and taking credit of all recei....
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.... The notice under section 148 has been issued keeping in view the objection raised by the RAP vide audit para No. 7 circulated vide letter No. 532 dated 17-11-1998. Remedial action is consonance with Board's instruction No. 1598 dated 1-2-1985. Reply to the audit has been sent vide letter No. 446 dated 31-3-1999 and copy endorsed to CIT, Delhi-III. -Sd- (Rajib Hota) JCIT, S.R. 20., N. D....
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....ible in law. 7. Having gone through the decision of this Court, we find that it has been held that there must, nevertheless, be an independent examination of the materials collected by the audit party in its report and it is only thereafter, that the Assessing Officer must come to an independent conclusion that there was an escapement of income. 8. Insofar as the present case is concerned, there....