“Section 283(2)”
The decision most relied on for Section 283(2) is Totgars Co-operative Sale Society Ltd. v. ITO (322 ITR 283), cited in 1,283 judgments on BharatTax.
Leading authorities on Section 283(2)
The interest income earned by a cooperative society from investing its surplus funds in fixed deposits with banks is not "derived from" its eligible business activities and is taxable as "income from other sources" under Section 56, thus not qualifying for deduction under Section 80P.
When an assessee's return is not accepted on its face, the Assessing Officer must issue a notice under Section 143(2) of the Income-tax Act, 1961 before proceeding with assessment. The AO cannot directly reject the return under Section 144 and conduct a best judgment assessment without first issuing a mandatory Section 143(2) notice.
Institutions established for specific purposes are not considered 'local authorities' for the purpose of Section 10(20) of the Income Tax Act.
Insurance compensation received for damage to stock-in-trade or raw materials is considered profit or loss from an industrial undertaking and is eligible for deduction under sections 80IA and 80IB of the Income Tax Act, 1961.
Courts should adopt a liberal approach when considering applications for condonation of delay, ensuring that substantive rights of assessees are not defeated by technicalities or limitations.
