Prima Facie some material is required not sufficiency or correctness for valid reopening u/s 147 We have only to see whether there was prima facie some material on the basis of which the Department could reopen the case. The sufficiency or correctness of the material is not a thing to be considered at this stage. […]
Phool Chand Bajrang Lal Vs. ITO (Supreme Court) The Hon’ble Supreme Court judgement in favour of the department makes it clear that when an information which is specific, relevant and reliable reassessment proceedings u/s 147 are valid, otherwise not. One of the purposes of Section 147, appears to us to be, to ensure that a […]
It is open to the Court to examine whether the reasons for the formation of the belief have a rational connection with or relevant bearing on the formation of the belief and are not extraneous or irrelevant for the purpose of the section.As explained by the Hon,ble Supreme Court of India in the following judgement […]
Expenditure on introducing the Casa balance conversion system in the spinning plant of the assessee was not allowed as ‘development rebate’ by the Income-tax Officer and the Appellate Commissioner. The Appellate Tribunal after inspecting the factory and considering the literature.
Reopening U/S 147 Not Valid If Certain Safeguards Not Followed By Revenue As Provided In section 147,148 And 151 of Income Tax Act, 1961 The important safeguards provided in sections 147,148 and 151 has not to be treated lightly by the concerned Assessing Officer and CIT as held in Chuggamal Rajpal Vs. S.P.Challia & others […]
Commissioner Of Income- Tax vs Smt. Indira Balkrishna (Supreme Court) Section 2(31)(v) of the Income Tax Act ,1961 with Explanation “Person” includes an association of persons or a body of individuals , whether incorporated or not ,with Explanation as under : For the purpose of this clause , an association of persons or a body […]
An abstract rule, principle or test can not determine the character of a transaction, depends on facts and circumstances. CIT Vs. R V Gupta , Delhi High Court Also decided the question of distinction between a capital sale and an adventure in the nature of trade was considered by the Supreme Court in G. Venkataswami […]
Note on Preparing books of accounts to be maintained under Section 44AA of Income Tax Act, 1961 Some important points to be considered white completing the Books of Accounts and preparing of the Balance sheet for business or profession by an accountant and an assessee. Sometimes it is seen that when an assessee is required […]
ACIT Vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd. (Supreme Court) Assessment order or an intimation u/s 143(1) of the Income tax Act , 1961 as it stood prior to amendment wef 1.4.1989 and thereafter and further amendments made . A broad analysis has been extracted from the judgement of the Hon’ble Supreme Court of India […]
Messrs Mehta Parikh & Co vs The Commissioner Of Income-Tax, Bombay (Supreme Court of India), Date Of Judgment: 10/05/1956, Equivalent citations: 1956 AIR 554, 1956 SCR 626 Bench: Natwarlal H. Bhagwati | Sudhi Ranjan Das (CJ) | T.L. Venkatarama Aiyyar Income-tax-Income from undisclosed sources-Assessment. Assessee’s explanation based on accounts supported by affidavits Accounts accepted as […]
