“Section 251(1)(c)”
The decision most relied on for Section 251(1)(c) is Smt. Prabhavati S. Shah v. CIT (231 ITR 1), cited in 186 judgments on BharatTax.
Leading authorities on Section 251(1)(c)
The first appellate authority must admit additional evidence if it is necessary for determining the true state of affairs and preventing undue hardship or a failure of justice, even without a specific request and particularly when the case falls under Rule 46A(1)(c).
A penalty under section 271(1)(c) for concealment or furnishing inaccurate particulars of income is not automatically leviable merely because a higher income is declared, even after a search or in a voluntarily revised return. The initial burden to prove concealment or inaccurate particulars lies with the Revenue.
The claim of depreciation under Section 32 of the Income Tax Act for assets used by charitable trusts is permissible, affirming the Bombay High Court's view that such a claim does not amount to a 'double benefit'.
The Assessing Officer cannot arbitrarily reject a share valuation report prepared by an expert using recognized methods like NAV or DCF for the purpose of Section 56(2)(viib) without providing valid reasons to demonstrate its perversity or unreasonableness.
The transformation of bulk powder into regulated, consumable capsules constitutes manufacturing under the definition provided in various statutes, qualifying for associated tax benefits and deductions.
The Commissioner of Income Tax (Appeals) can make enhancements to an assessment during appellate proceedings, provided such enhancements do not amount to introducing an entirely new head of income.
The case is cited for the proposition that assessees must produce requisite documents, including confirmation of ITR, balance sheets, and bank accounts, to satisfy the ingredients of Section 68 of the Income Tax Act. Failure to do so can lead to adverse inferences.
An appellate authority cannot enhance income on an issue that was not the subject matter of the original assessment proceedings. The appellate authority is empowered to decide any matter arising in the assessment proceedings, even if not raised in the appeal, provided it is covered by the order appealed against.
