search servey and seizure

Q. 28 During the course of search it was found that Assessee has receivedcertain amounts due to Arbitration Award for earlier years but Assesseehave shown as income in the year when received and accepted byDepartment. if Assessee follow mercantile system of accounting whetherwhile completing the search assessment AO can take that amount inearlier years for which it pertains.Ans. No. A.O. cannot take that amount in earlier years because amount is dueto Assessee only due to Arbitration Award and that is the subsequentevent ie after date of search.Reliance can be placed on the following judgements :(i)(ii)(iii)(iv)(v)193 ITR 496. G. Gopinathan v/s CIT192 ITR 534 (Ori.) BPR Construction v/s CIT53 ITR 114 (SC) CIT v/s Gajapathy Naidu.144 ITR 270 K. Sadashiva Krishnarao v/s CIT232 ITR 2 (SC) P. Mariappa Coundet v/s CIT.Q. 29 Can the matter be referred to the valuation officer for valuation of propertyetc by assessing officer in search cases?Ans.By, virtue of Amendment by Finance Act No.2, 2004 a new section isinserted which is sec. 142A, wherein the assessing officer is given powersto refer the matter in Search cases to the Valuation Officer hence after 8-7-2004 AO can refer matter to valuation officer to value property etc.MODEL OUESTIONS AND ANSWERS WHICH MAY BE ASKEDDURING THE COURSE OF SEARCH OPERATIONSQV. 1 What are the sources of your income?Ans. The sources of income should be stated irrespective of whether theincome there from is taxable or not.The answer be given with regard to the sources as exist on the date ofrecording of the statement including the source which might have comeinto existence after the last return was filed. If any such source is not