S.145: Method of accounting – A person cannot make a profit from himself- Revaluation is not taxable event. [S.4 , Indian Income -tax Act, 1922, S.13]
S.145: Method of accounting – A person cannot make a profit from himself- Revaluation is not taxable event. [S.4 , Indian Income -tax Act, 1922, S.13]
S.144: Best Judgment Assessment – Bogus purchases – Unregistered dealers –Addition of alleged bogus purchase creditors after rejection of books of account – assessee brought on record, where CIT(A) in penalty appeal proceedings affidavits of 13 unregistered dealers out of whom 12 were examined by the Officer, accepted the explanation of assesssee that said creditors are genuine and accordingly deleted the penalty under section 271(1)(c) of the Act. That The dealers stood by the assertion made by the assessee about the purchases on credit from them-Held Factual basis on addition was made in quantum proceedings stands dispelled by the affidavits and statements of the concerned unregistered dealers in penalty proceedings- Addition cannot be justified, much less, sustained (Other contentions raised by assesse not adjudicated)- Addition is held to be not justified . [ S.68 , 271(1) (c ) ]
S. 144: Best judgment assessment-Arbitrary-Honest and fair estimate.[ S.145(3) ]
S.143(3) : Assessment – Affidavit – When a statement is given in affidavit the same is proved to be correct unless proved otherwise [S.69A, High Denomination Bank Notes (Demonetisations) Ordinance, 1946, Indian Income-tax Act, 1922, S.23 ]
S.143(3): Assessment – Principle of res-judicata- Strictly Res judicata does not apply to income tax proceedings. However, where a fundamental aspect permeating through different assessment years has been found as a fact one way or the other and parties have allowed that position to be sustained by not challenging the order it would not be at all appropriate to allow the position to be changed in a subsequent year [S. 11, 12 ]
. 143(3): Assessment-Natural justice -Denial of opportunity to cross examine witness-Failure to give the assessee the right to cross-examine witnesses whose statements are relied upon results in breach of principles of natural justice. It is a serious flaw which renders the order a nullity. [Central Excise Act, 1944, S.3, Rules 1944, R. 173C)
S.143(3): Assessment – Amalgamation – Date of Amalgamation – Specified in scheme of amalgamation and approved by the Court without specifying any other date – Date specified in scheme should be taken as transfer date. [S. 2(IB), Constitution of India, Art. 226, Companies Act 1956, S. 391, S. 394]
S. 143(2): Assessment – Notice – Failure to issue a notice u/s 143(2) renders the assessment order void even if the assessee has participated in the proceedings – Deeming fiction does not operate to save complete absence of notice. [S. 292BB]
S. 139AA: Return of income – Quoting of Aadhar number – Legislative powers – Provision is held to be valid – Proviso to s. 139AA(2) cannot be read retrospectively as it takes away vested rights. It will only have prospective effect. [Art. 14, 19(1)(g), 21]
S. 133A: Power of survey – Statements recorded during Survey – Evidentiary value – Unexplained investments – Statement obtained under survey would not automatically bind upon the assesse and that it is not conclusive piece of evidence by itself and that section 133A does not empower any Income-tax Officer to examine any person on oath and that solely on the basis of the statement given by one of the partner of the assessee-firm income is not assessable – Addition cannot be made merely on the basis of such statement. [S. 69 ]