S. 148: Reassessment – Notice – Notice has been issued on wrong premise, reopening of assessment is not valid-Notice cannot be issued for certain examination [ S.147 ]

S. 147 : Reassessment –With in four years-Reopening for taxing Bogus share capital-Even in a S. 143(1) intimation, the AO is not entitled to reopen on the ground that the assessee has received “huge share premium” which was not “examined” by the AO. The AO cannot reopen in the absence of tangible material that shows income has escaped assessment. [S. 68, 143(1)]

S. 147 : Reassessment-Reasons for reopening was communicated to assessee –No objections made by assessee-AO assumed valid jurisdiction-Reassessment is held to be valid. [S. 148, 151]

S. 145 : Method of accounting-Estimation of income-Accounts of assessee were subject to statutory as well as tax audit–Accounts not rejected-Addition made on estimate basis was deleted.

S. 145: Method of accounting De-reorganisation was done for default on part of customers; thus, change in method of account was on account of proper reasons, AO was not justified in rejecting the books without finding any fault with such change.

S. 145 : Method of accounting–Inclusive method–There is no need to credit separately made on account of excise duty to the profit and loss account.

S. 145 : Method of accounting–Percentage completion method– Corresponding expenditure incurred in relation to unbilled sales–Sales include sub contract charges-Provision to be made–Rule of constancy to be followed.

S. 145 : Method of accounting-Works contract tax(TDS)-When sale is offered corresponding amount of works contract is allowable as deduction. [S. 37(1)]

S. 143(3) : Assessment-Unaccounted sales–Addition can be made only after the consideration of purchases and ancillary expenses-Addition is restricted to only profit margin.

S. 143(3) : Assessment–Ad hoc addition-No understatement by assessee-Addition on ad hoc basis at 50% is held to be not sustainable.