“Section 113(2)”
The decision most relied on for Section 113(2) is CIT v. Vatika Township (P.) Ltd. (49 Taxmann.com 249), cited in 294 judgments on BharatTax.
Leading authorities on Section 113(2)
Legislation is ordinarily presumed not to have retrospective operation, especially for taxing statutes unless explicitly stated or when intended to remove hardship for the assessee. The decision clarifies the principles for determining whether an amendment to a taxing statute applies prospectively or retrospectively, distinguishing between clarificatory and substantive amendments.
The expression "attributable to" is wider in scope and import than the expression "derived from" when interpreting provisions related to profits and gains from a business or industrial undertaking. The legislature's deliberate use of these distinct phrases indicates a nuanced intent regarding the directness of the nexus between income and the source.
The lack of jurisdiction to initiate reassessment proceedings under Section 147/148 cannot be waived and can be challenged at a later stage, even if not raised initially. An invalid reassessment due to such jurisdictional defects cannot sustain subsequent penalty proceedings.
The law declared by a High Court is binding on all subordinate authorities and tribunals within its territorial jurisdiction.
The determination of whether share transactions constitute a business activity or an investment depends on the facts of the case. Factors like volume, frequency, and regularity indicate business activity, irrespective of how such transactions are presented in accounts.
A penalty under section 271(1)(c) is not leviable if the notice issued under section 274 does not specify whether the penalty is for concealment of income or for furnishing inaccurate particulars of income.
Institutions established for specific purposes are not considered 'local authorities' for the purpose of Section 10(20) of the Income Tax Act.
Where the expenses paid to a related entity were allowed as a deduction in computing the income of the taxpayer, the income attributable to a Permanent Establishment (PE) in India, if less than the remuneration paid, should be calculated accordingly, following Article 7 of the Double Taxation Avoidance Agreement (DTAA).
