Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

RAJESH CHOUDHARY (ASSISTANT MANAGER)     11 October 2012

Assessment order

Dear Friends, While going through some records I come acrossed one assessment order in which i have a doubt about the validity of assessment. the assessing officer nade the assessment for the year 2002-03. while going assessment the assessing office found that the assesee had constructed one house property in the year 1999-2000. for that the assessing office required the assessee furnish the source and assessee furnished the details. However the assessing office disallow and make addition to the extent of Rs.3,00,000/- in the AY 2002-03. my doubt is whether the assessing office is correct in making the additions in the AY 2002-03 or otherwise he has to make addition in the AY 2000-01 by opening the escapting assesssment? 



Learning

 2 Replies

R RAJAGOPALAN (ADVOCATE)     12 October 2012

Facts  stated:the assessing officer nade the assessment for the year 2002-03. while going assessment the assessing office found that the assesee had constructed one house property in the year 1999-2000. for that the assessing office required the assessee furnish the source and assessee furnished the details. However the assessing office disallow and make addition to the extent of Rs.3,00,000/- in the AY 2002-03. my doubt is whether the assessing office is correct in making the additions in the AY 2002-03 or otherwise he has to make addition in the AY 2000-01 by opening the escapting assesssment? 


Reply:The unexplained investment  made in the FY 1999-2000 cannot be lawfully assessed in the Assessment year 2002-03. However it is possible that the construction though commenced in the FY 1999-2000 was continued in theFY 2001-02 i
n which case the unexplained investment  made durin the FY 2001-02 can be assessed in the AY 2002-03. 

Sivadas Chettur (Chartered accountant)     14 October 2012

The AO can make the addition only in the year in which the investment is made. You have stated that the construction tok place in the year 99-2000. If so it can be done only in that year since there is no material with AO for the year 2002-03. It is settled law that each year is independent and what happened before after the assessment year is not relevant.

 

Siva208@yahoo.com


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register