“Section 73(1)”
The decision most relied on for Section 73(1) is Metal Box Co. of India Ltd. v. Their Workmen (73 ITR 53), cited in 276 judgments on BharatTax.
Leading authorities on Section 73(1)
A provision for gratuity liability, calculated on an actuarial basis and spread over a number of years, is an allowable business expense. Such a provision is considered a charge against profits rather than a reserve.
The Assessing Officer is justified in initiating reassessment proceedings under Section 147 based on specific, tangible information received, even if an assessment under Section 143(1) or 143(3) was previously done. At the initial stage, "reason to believe" only requires relevant material to form a reasonable belief that income has escaped assessment, not established proof of escapement.
This case is cited for the proposition that oral admissions made during the course of a search can be considered as evidence.
Payments for the use of copyrighted articles, including computer software, constitute royalty income under Section 9(1)(vi) of the Income Tax Act, and are therefore subject to withholding tax under Section 195.
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.
Subscription amounts received from the public at large under a collective investment scheme are in the nature of capital receipts and not income, and therefore, should be reduced while calculating the total income of the assessee.
The case contributes to the established legal position concerning the scope and procedure of assessments initiated under Section 153A of the Income-tax Act, 1961, following a search.
A bank passbook alone does not constitute the books of account of an assessee for the purpose of the Income Tax Act.
