COMMISSIONER OF INCOME TAX Vs. S KAMALAHASAN

JUDGEMENT

(1.) THE AO took the view that the method of accounting adopted by the assessee did not reflect his true income. THErefore, he added further sums to what had been reported by the assessee as his income. THE assessment year is 1982-83.

(2.) THE assessee received moneys from Hasan brothers, with which he had entered into an agreement, in terms of which the firm was to hire out the assessee's service to others, receiving the entire consideration for such service and pay 3/4th of the gross receipt to him upto 31st March, 1979 and thereafter 1/2 of gross receipts or Rs. 50, 000 per annum, whichever was higher. THE assessee as also the firm had been following a method of accounting under which amounts received for films either in instalments or as advance at different points of. time, were accounted for, fully in the year the picture was released. That method was accepted by the AO for the earlier years and has been followed for the assessment of the firm as also the assessee in subsequent years as well. It was only during this assessment year the AO held that that method of accounting did not reveal the true income for the year.