“Section 46(4)”
The decision most relied on for Section 46(4) is UCO Bank, Calcutta v. Commissioner of Income Tax, W.B (4 SCC 599), cited in 122 judgments on BharatTax.
Leading authorities on Section 46(4)
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.
Section 139(4) of the Income-tax Act, which allows for filing a belated return, acts as a proviso to Section 139(1). Consequently, the time limit for depositing amounts or utilizing funds to claim exemptions, such as under Section 54, extends up to the due date for filing a return under Section 139(4).
A return of income filed within the period allowed under Section 139(4) is valid for claiming exemptions and deductions, including those under Sections 54, 54F, and 80AC. However, depositing the unutilized capital gains in the Capital Gains Account Scheme is a statutory and mandatory requirement for claiming exemption under Section 54F.
When considering the genuineness of a loan transaction, the initial onus lies with the assessee to provide a satisfactory explanation and sufficient material; if discharged, the onus shifts to the Assessing Officer.
A declaration made by another party before the Income Tax Settlement Commission is not binding on the assessee, and no addition can be made in the assessee's assessment in the absence of independent material connecting the assessee to the transaction.
An appellate tribunal ought to remand a matter rather than set aside assessments entirely when jurisdiction is in question.
Profits eligible for deduction under Section 80-IB are calculated after adjusting for disallowances made under Section 40(a)(ia). Any disallowances under Section 40A(3) are added back to the profits for the purpose of determining the deduction under Section 80-IB.
An assessee must raise objections regarding territorial jurisdiction before the assessment is completed. The Central Board of Revenue has the power to assign assessments to an Income Tax Officer of its choice.
