“Section 153(2)(a)”
The decision most relied on for Section 153(2)(a) is 153 (Gujarat) 8 Shakti Karnawat v. ITO (296 ITR 90), cited in 171 judgments on BharatTax.
Leading authorities on Section 153(2)(a)
A live link of third-party information can form the basis for reopening an assessment under Section 148, provided it contains material facts necessary for assessment. The Assessing Officer must demonstrate a "reason to believe" that income has escaped assessment, which can be satisfied by such information even if it pertains to other assessees or relates to accommodation entries.
A statutory provision is not construed to have retrospective operation unless such a construction is explicitly stated in the Act or arises by necessary and distinct implication.
Under Section 263, the PCIT/CIT cannot set aside an assessment order for mere 'insufficiency of enquiry' or by remanding the matter to the Assessing Officer for fresh examination. The PCIT/CIT must conduct necessary inquiries and themselves establish how the order is erroneous and prejudicial to the revenue before passing a revision order.
A 'direction' issued by an appellate or revisional authority under Sections 150(1) or 153(3) of the Income-tax Act must be a specific, clear, and mandatory positive command requiring action, and not merely an observation or finding, to be legally effective.
The case is cited for various issues including the definition of capital assets, reassessment procedures under sections 153A and 153C, and the effect of clarificatory amendments.
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.
Expenditure incurred by a company for the purpose of its business, including expenses to fulfill statutory legal obligations or those related to an erstwhile business post-transfer, is allowable as revenue expenditure under Section 37 of the Income-tax Act.
Failure to issue a notice under Section 143(2) within the prescribed time or after the time for completing reassessment under Section 153(2) has expired renders the entire assessment proceedings invalid. Section 292BB does not waive the requirement for such statutorily mandated notices.
