“Section 10(4)”
The decision most relied on for Section 10(4) is CIT v. Lavanya Land (P) Ltd. (83 Taxmann.com 161), cited in 172 judgments on BharatTax.
Leading authorities on Section 10(4)
In a search assessment under Section 153A or 153C, additions cannot be sustained if the material or transactions relied upon do not relate or pertain to the assessee. Regular books of accounts not unearthed during search do not constitute incriminating material to justify additions.
The Revenue is bound by the rule of consistency and cannot adopt a divergent position in a subsequent assessment year unless there is a change in facts or law.
An addition to income based on statements recorded during search operations under Section 132(4) is valid, and the assessee bears the burden of proving such statements incorrect to justify their deletion. The Assessing Officer can rely on such statements, a proposition affirmed by the Supreme Court's dismissal of the SLP.
Long Term Capital Gains (LTCG) from penny stock transactions are liable to be treated as bogus and added back under Section 68 as unexplained cash credits, especially when evidence suggests the involvement of entry operators providing accommodation entries.
Circulars and instructions issued by the Central Board of Direct Taxes (CBDT) under Section 119 of the Income Tax Act have the force of law and are binding on all income tax authorities. These circulars can mitigate the rigour of statutory provisions, provide administrative relief, and ensure uniform application of the Act for the benefit of the assessee.
Interest earned from the temporary parking of borrowed funds specifically intended for project development, prior to the commencement of business, constitutes a capital receipt inextricably linked to the project and is not taxable as 'income from other sources'.
While there is no statutory time limit for filing Form 10 to claim exemption for income accumulation under Section 11(2), it must be furnished before the completion of assessment proceedings for the Assessing Officer to grant the exemption.
An educational institution is eligible for exemption under Section 10(23C)(vi) if it exists solely for educational purposes, even if it generates incidental profits. The mere existence of profit does not disqualify an institution from exemption.
