1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Failure to make disclosure – contractor case

ByCA Gopal Nathani

Jun 22, 2021

In (2021] 433 ITR 48 (Mad) the assessee contractor followed the percentage of completion method of accounting for recognition of income and the company so mentioned this fact in their financial statements

/annual report year after year.

During the assessment, the assessee did not submit any document of certification of percentages of works completed under each of the contracts either by an in-house department of the assessee or by an independent chartered engineer.

This lead to case reopening action for failure to make full disclosure.

The Court affirming the AO action held that certain things such as the terms of the contract under which the revenue was generated or the bill raised on a client or a customer could not be certified in the audited profit and loss account and the balance-sheet which facts have to be supported with documents and certifications.