2009 (4) TMI 73

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...., whether the Tribunal is justified in sustaining the addition of Rs.3.17 crores as undisclosed income in the hands of the appellant. 2. The Assessment year involved herein is the Block period from 1-4-1995 to 19-12-2001. 3. The appellant is a Director of M/s. Nalani Properties Pvt. Ltd. On 19/12/2001 the premises of the petitioner as well as the premises of M/s. Nalini Properties Pvt. Ltd. and ....

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....hould not be completed under section 145(3) of the Income Tax Act, 1961 ('Act' for short). The appellant contended that he was following the cash system of accounting and since the amount of Rs.3,17,53,495/- was not actually received, the same was not offered to tax. The assessing officer rejected the contention of the appellant and passed a block assessment order section 158BC of the Act by holdi....

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....accounting from mercantile system to cash system and, therefore, the amount of Rs.3.17 crores be treated as undisclosed income of the appellant in the block period. Accordingly, the appeal filed by the appellant was dismissed by CIT(A). 7. However, challenging the order of CIT(A) the appellant filed an appeal before I.T.A.T. By the impugned order dated 17/4/2008 the Tribunal held that the amount ....

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....the above contentions because, having agreed before the CIT (A) that it is difficult for him to prove that he has changed the method of accounting from mercantile system to cash system and, therefore, the amount of Rs.3.17 crores be taxed as undisclosed income in the block period, it is not open to the appellant to challenge the decision of CIT(A) on merits. Moreover, before the Tribunal, the appe....