“Section 143(3)(3a)”
The decision most relied on for Section 143(3)(3a) is 319 ITR 306 (SC); CIT v. Vinay Cement Ltd. (84 Taxmann.com 185), cited in 300 judgments on BharatTax.
Leading authorities on Section 143(3)(3a)
Employee and employer contributions towards Provident Fund (PF) and Employees' State Insurance (ESI) are allowable deductions under sections 36(1)(va) and 43B, respectively, if deposited on or before the due date for filing the return of income under section 139(1), even if paid after the due date prescribed under the respective welfare legislation.
A new industrial undertaking is not considered a reconstruction of an existing business for tax deduction purposes if it is a separate, independent production unit manufacturing commercially tangible products that can operate without losing its identity in the old business. The transfer and substantial use of assets and manpower from an old business to a new one may indicate reconstruction.
Incentive provisions in the Income-tax Act, particularly those granting deductions for new industrial undertakings, must be construed liberally to achieve their legislative purpose. This principle guides the interpretation of conditions such as what constitutes a 'new undertaking' versus a 'splitting up or reconstruction' of an existing business for claiming deductions.
Consistency must be maintained in income-tax proceedings when the facts are not different, even though res judicata does not strictly apply. A consistent view taken in a particular year should not be departed from in subsequent years without contrary material.
A right to purchase property under an agreement to sell is a capital asset as defined under Section 2(14) of the Income-tax Act. The relinquishment or extinguishment of such a right constitutes a transfer of a capital asset, the consideration for which is taxable as capital gains.
Expenditure incurred for a purpose prohibited by law or in violation of another statute is not deductible as business expenditure under Section 37(1) as it is against public policy. The Explanation to Section 37 reinforces that such expenditure is deemed not for business.
For supporting manufacturers claiming deduction under Section 80HHC(3A), the reduction of export incentives specified in Explanation (baa) of Section 80HHC, which refers to amounts under Section 28(iiia) to (iiie), does not apply.
An assessment order is erroneous and prejudicial to the revenue, justifying revision under Section 263, if the Assessing Officer fails to make necessary inquiries or examine materials provided by the assessee, leading to a routine assessment.
