“Section 155(4)”
The decision most relied on for Section 155(4) is Virtual Soft Systems Ltd. v. CIT (289 ITR 83), cited in 91 judgments on BharatTax.
Leading authorities on Section 155(4)
Section 271 of the Income-tax Act, being a penal provision, must be construed strictly and narrowly. The case also initially held that a clarificatory amendment was not retrospectively applicable, a view later reversed by a larger bench.
Natural justice, including the right to a reasonable opportunity of being heard, must be afforded to the assessee, especially when a rectification order enhances the assessment.
The actual cost of an asset for depreciation purposes is the cost to the assessee, reduced by any portion of that cost met by another person. Revaluation of assets motivated by inflating depreciation claims, rather than genuine business needs, is not permissible.
The date of handing over documents to the AO of a non-searched person is considered the date of search for the purpose of Section 153C, determining the six-year block period for reassessment.
