“Section 253(6)”
The decision most relied on for Section 253(6) is Shivsagar Veg Restaurant v. ACIT (317 ITR 433), cited in 202 judgments on BharatTax.
Leading authorities on Section 253(6)
Orders that are inordinately delayed are liable to be recalled and heard afresh, and the Appellate Tribunal President should frame guidelines for timely disposal of appeals.
The Supreme Court clarifies the distinction between income chargeable as capital gains and income taxable as business profits, guiding the assessment of whether a transaction constitutes a transfer of a capital asset or is in the nature of trade.
A judicial decision is authority only for what it actually decides, which is its ratio decidendi, and not for every observation or what logically follows from general expressions. A decision must be read as applicable to the facts proved, with general expressions qualified by the specific context in which they are found.
An assessee's claim for deduction under sections like 80-I or 80-IA cannot be denied solely for failing to file the audit report (Form 10CCB) along with the return, provided it is filed before the completion of the assessment and any delay is for good and sufficient reasons.
The ITAT held that invoking Section 68 for unexplained cash credits is not legally sustainable if the assessee has not maintained proper books of accounts. Bank passbooks alone do not constitute books of account.
Where the Assessing Officer has not made independent inquiries to disprove the creditworthiness of creditors, whose affidavits and statements disclose their source of income, an addition made under Section 68 is rightly deleted. The revenue cannot rely on surmises, suspicion, or probabilities to decide the fate of the assessee.
Section 54F deduction for acquiring a residential plot and constructing a house should be construed liberally. The purpose of the provision is to encourage investment in housing, and the intention of the legislature should be considered.
A company is considered a resident of India only when its control and management are "wholly" situated in India. If any part of the control and management is located outside India, the company cannot be deemed a resident.
