2019 (4) TMI 1179

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....osed receipts is not the year of receipt but as per returns filed by the assessee u/s 153A of the IT Act, 1961?" 2. The Respondent­Assessee was engaged in development of real estate. Assessee was subjected to search in seizure action. During search assessee admitted certain undisclosed income and also filed the return of income pursuant to the search. In the returns the assessee also disclosed the same amount of income, but shifted the year of earning such income as per its method of accounting and also claimed expenditure in relation to such additional receipts. The Assessing Officer and CIT (Appeals) objected to such method, upon which the issue eventually reached the tribunal. The tribunal in the impugned judgment ruled in favour ....

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....ssion' is a combination of a percentage of expenses incurred on the on­going projects plus the balance of the profit of projects completed during particular year. The methodology of accounting is not disputed by the Revenue. So however, the dispute relates to assessing of income in relation to such undisclosed receipts of business, which were found in the course of search and were not declared in the regular books of account. Notably, in so far as the nature of such unrecorded receipts is concerned, there is no dispute between the assessee and the Revenue. Both sides agree that the undisclosed receipts found during the course of search are a part and parcel of the business of the assessee of developing real estate properties. In thi....