“Section 15(4)”
The decision most relied on for Section 15(4) is 222 Taxman 15 (Gujarat)(MAG.), Principal Commissioner of Income-tax-4 v. G & G Pharma India Ltd. (384 ITR 147), cited in 274 judgments on BharatTax.
Leading authorities on Section 15(4)
An assessment can be reopened if there is tangible material indicating escapement of income, demonstrating a live link between the material and the reasons recorded for reopening. The Assessing Officer must apply their mind to the material facts, and the sanction under section 151 should not be based on borrowed satisfaction.
The broad definition of 'business' should not be applied when interpreting the proviso to Section 2(15) of the Income-tax Act, 1961, as the object and purpose of the section must be considered.
The Assessing Officer must grant the correct deduction after due verification of claims made by the assessee, even if not perfectly articulated initially. This principle applies in assessment proceedings, including those involving specific deductions like those for export-oriented units under Section 10B.
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.
An activity, even if it involves sales, does not constitute "business" for tax purposes if it is an incidental part of the main activities of a public utility entity and lacks a profit motive. The presence of a profit motive is generally essential to classify an activity as business.
Educational institutions are not commercial activities, and collecting fees for betterment and growth does not automatically disqualify them from being considered educational. Fees collected for value-added courses, training, or hostel facilities can be eligible for exemption under Section 11 if applied towards the institution's infrastructure.
Prior to the jurisdictional High Court's decision in CIT v. Samsung Electronics Co. Ltd. on October 15, 2011, the purchase of off-the-shelf software was not subject to TDS, and therefore, no disallowance under Section 40(a)(i) or 40(a)(ia) could be made.
Education encompasses a broad range of activities beyond formal schooling, including systematic training designed to impart knowledge and skills, reflecting the acceptance of new ideas and the development of means to reach recipients. The definition of education should not be confined to a narrow or pedantic sense.
