“Section 131(1)(b)”
The decision most relied on for Section 131(1)(b) is B Kishore Kumar v. DCIT (229 Taxmann 614), cited in 100 judgments on BharatTax.
Leading authorities on Section 131(1)(b)
A retracted statement made during a search under section 132(4) carries no weight and is rejected, especially when the genuineness of purchases is disproved.
The phrase "so far as may be" in a statutory provision indicates that the referred procedures, such as those for conducting searches, are to be generally followed to the extent possible, meaning they are not mandatory in every minute detail but applied practically.
Loose sheets seized during a search are considered 'documents' within the meaning of section 158B(b), and there is a presumption under section 132(4A) regarding such seized documents. The assessee must produce rebuttal evidence to disprove entries made in these loose sheets.
The Income Tax Officer has a duty to assist the assessee in producing evidence by exercising powers such as summoning parties, and an assessee is prejudiced if this duty is not fulfilled.
Business expenditure is deductible even if the business has not yet commenced, provided it is incurred for the purpose of setting up the business. The commercial expediency of a businessman's decision regarding payment quantum is generally respected.
In block assessments, the Assessing Officer cannot determine undisclosed income by extrapolating existing documents. There is no scope for such extrapolation.
An assessment or reassessment proceeding initiated or continued against a deceased person after their demise is illegal and void ab initio, as no valid notice can be issued to a dead individual.
Block assessments for undisclosed income are independent of regular assessments and operate in a separate field. Undisclosed income under Chapter XIV-B is classified and assessed separately at a higher tax rate.
