Re: Method of Accounting – S.145A .
An assessee has filed a declaration u/s 4 of the scheme to settle the dispute that was being contested in an appeal before the tribunal for A.Y. 2011-12 in respect of the addition made to the value of the closing stock u/s145A and also for disallowance of expenditure on th ground that the said expenditure pertained to the subsequent year. The declaration has been accepted by the authorities and the appeal stands withdrawn as per s. 4(2)(3)(5) and s.7. The assessee has now sought relief for the deduction for the subsequent A.Y. 2012-13 on account of the increase in the value of the opening stock and the expenditure disallowed for that year consequent to the addition made and accepted for the preceding previous year A.Y. 2011-12.
This is an unintended hardship which is more pronounced in cases where the assessee has opted for settlement under the scheme which does not provide for any consequential relief in an assessment year different than the year of settlement even where such relief is consequential and denial of such relief results in a sure double taxation. Had assessee not withdrawn the appeal, he could have appealed to the appellate authorities to give consequential relief under their powers to avoid double taxation. Unless the Government clarifies its position in such subjects , it would not be possible to advise an assessee to opt for the scheme especially where the time for filing the revised return of income is over.
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