“Section 150(1)”
The decision most relied on for Section 150(1) is 1. S. S. Gadgil v. Lal & Co. (53 ITR 231), cited in 158 judgments on BharatTax.
Leading authorities on Section 150(1)
Income-tax assessment proceedings are administrative in nature, not civil disputes or judicial proceedings between contesting parties. Income-tax authorities act as administrative bodies to estimate income and assess tax, and the proper service of notice within the limitation period is foundational for reassessment jurisdiction.
Where the period of limitation for issuing a notice under section 148 has expired before an amendment to the law takes effect, the amended provision, if not expressly retrospective, cannot revive the expired period of limitation to reopen concluded proceedings.
The Supreme Court clarified that an appellate authority's 'finding' must be essential for disposing of the appeal for the relevant assessment year, not an incidental observation about another year's income. Appellate authorities cannot issue directions on matters not directly arising in the appeal for the specific assessment year, especially regarding escaped income, which has separate statutory mechanisms.
The assessee's burden under Section 68 to prove cash credits is discharged by establishing the identity of the creditor and the genuineness of the transaction; the assessee is not required to prove the creditor's source of funds or creditworthiness, as the department can use Section 131 for further investigation.
Reassessment proceedings cannot be initiated based on a mere change of opinion by the Assessing Officer when the primary facts necessary for assessment are fully and truly disclosed. The assessee is not obligated to instruct the Income-tax Officer on questions of law, nor can reassessment commence if the AO drew a wrong legal inference from disclosed facts.
Prior to the jurisdictional High Court's decision in CIT v. Samsung Electronics Co. Ltd. on October 15, 2011, the purchase of off-the-shelf software was not subject to TDS, and therefore, no disallowance under Section 40(a)(i) or 40(a)(ia) could be made.
A 'direction' issued by an appellate or revisional authority under Sections 150(1) or 153(3) of the Income-tax Act must be a specific, clear, and mandatory positive command requiring action, and not merely an observation or finding, to be legally effective.
A retraction of a statement recorded under Section 132(4) of the Income Tax Act, 1961, must be made within a reasonable time or immediately after the statement is recorded. A retraction made approximately eight months later is to be disregarded.
