S. 151 : Reassessment – Sanction for issue of notice –Joint Commissioner of Income tax -Reopening of assessment with the approval of Commissioner is held to be not valid [ S.147, 148 , 151(2) ]
S. 151 : Reassessment – Sanction for issue of notice –Joint Commissioner of Income tax -Reopening of assessment with the approval of Commissioner is held to be not valid [ S.147, 148 , 151(2) ]
S. 5 : Scope of total income -Accrual- Year of taxability -Income accrues only when it becomes due – When the other party accepts the liability to pay the amount .[ S.4, 145 ]
S. 68 : Cash credits – Share application money and share premium- Identity , genuineness of transaction, creditworthiness is proved – Deletion of addition is held to be justified .
S. 271(1)(c) : Penalty – Concealment – Disallowance of expenditure – Deletion of penalty is held to be valid .
S. 80AC : Return to be furnished – Housing projects- Fling of return of income u/s 139(1) is mandatory for claiming the deduction u/s 80IB (10) -Not eligible to claim the deduction . [ S.80IB(10),139(1) ]
S. 147 : Reassessment – Sale of agricultural land – Book profit-Erroneous application of law – Mechanical application of mind- Reassessment is held to be not valid .[ S. 2(14(iii) , 115JB ,148, 151, 263 ]
S. 147 : Reassessment – After the expiry of four years- Tangible material is required – Live link with such material for formation of the belief- Reason must specify as to what is the nature of default or failure on the part of the assessee- Reassessment notice is quashed . [ S. 40(a)(ia),148 , 194, 194I , Art .226 ]
S. 69C : Unexplained expenditure – Bogus purchases- Business of Civil Contactor – Even if the purchases made by the assessee are to be treated as bogus, it does not mean that entire amount can be disallowed- As the AO did not dispute the consumption of the raw materials and completion of work, only a percentage of net profit on total turnover can be estimated. [ S. 37(1), 68 ]
S.56: Income from other sources – Share premium- Approved valuer report was furnished – Addition is held to be not valid . [ S. 56(2)(viib), R, 11UA ]
S.54F : Capital gains- Investment in a residential house – The words “in India” cannot be read into section 54F when Parliament in its legislative wisdom has deliberately not used the words. The assessee is entitled to exemption of the Act though he has acquired house property in a foreign country- The amendment to s. 54F by the Finance Act, 2014 w.e.f. 2015 is applicable only prospectively [ S.45 ]