“Section 72(1)”
The decision most relied on for Section 72(1) is CIT v. Devi Prasad Vishwanath Prasad (72 ITR 194), cited in 272 judgments on BharatTax.
Leading authorities on Section 72(1)
If there is an unexplained cash credit, the Assessing Officer can treat it as the assessee's income, even when the income is finalized on an estimation basis, without proving its specific source. The onus then shifts to the assessee to prove that the income represented by the cash credit has already been taxed.
Income cannot be taxed twice unless expressly provided by law. Income accrued in a particular year must be included in that year's total income and cannot be ignored to be taxed in a subsequent year based on receipt.
A mere irregularity in granting approval under Section 158BG of the Income-tax Act does not render the resulting assessment order invalid or fatal.
Profits of an industrial undertaking eligible for deduction under sections 80-I, 80IB, or 80IC are computed without allocating common corporate or head office expenses that lack a direct nexus to the unit's industrial activity.
A provision made for Unclaimed Prior Revenue (UPR) is not an item to be added back to book profit under Explanation 1 to section 115JB(2) of the Income Tax Act, 1961.
Payments for market surveys conducted for the purpose of procuring orders on a commission basis are not fees for technical services under section 9(1)(vii) of the Income Tax Act, 1961, as they are incidental to the business activity and do not involve the 'make available' clause.
Taxing authorities must respect the legal character of a transaction, even if it appears to be a device to reduce tax, unless the transaction is a sham or conceals the true legal relationship.
When lending money is not the business of a company, loans or advances given to an assessee-shareholder are treated as deemed dividends under section 2(22)(e) of the Income-tax Act. The provisions of section 2(22)(e) apply to a company that has taken a loan from its subsidiary.
