“Section 124(1)(b)”
The decision most relied on for Section 124(1)(b) is CIT v. NHK Japan Broadcasting Corporation (305 ITR 137), cited in 96 judgments on BharatTax.
Leading authorities on Section 124(1)(b)
When no specific statutory period of limitation exists, proceedings under Section 201(1) and 201(1A) of the Income-tax Act, particularly for payments to non-residents, must be initiated within a reasonable period of four years. This limitation also applies to consequential penalty proceedings under Section 271C.
The computation of deduction under Section 80HHC requires applying the formula: Profits derived from exports = (Profits of the business x Export Turnover) / Total Turnover. For this calculation, miscellaneous income, sundry sales, and income from services, if not directly relatable to export activity, are generally to be excluded from "profits of the business" and "total turnover".
The case is cited for various issues including the definition of capital assets, reassessment procedures under sections 153A and 153C, and the effect of clarificatory amendments.
The time limit for objecting to an Assessing Officer's territorial jurisdiction under Section 124(3) does not apply when an assessee claims the officer acted wholly without jurisdiction or outside the authority of law. Objections to jurisdiction not relating to territorial matters are not subject to these time limits.
An appellate tribunal ought to remand a matter rather than set aside assessments entirely when jurisdiction is in question.
The Assessing Officer can determine the annual value of a property based on what it might reasonably be let for from year to year or its annual ratable value, especially when rent is not charged or is below market rates. This approach is permissible under Section 23(1)(a) of the Income-tax Act.
An assessment order passed without a valid order of transfer under Section 120(4)(b) of the Income Tax Act, 1961, is void and without jurisdiction.
An Assistant Commissioner of Income Tax (ACIT) can perform the functions and exercise the powers of an Assessing Officer only if specifically directed under section 120(4)(b) of the Income Tax Act.
