“Section 144(10)”
The decision most relied on for Section 144(10) is A.L.A. Firm v. CIT (189 ITR 285), cited in 128 judgments on BharatTax.
Leading authorities on Section 144(10)
Under the unamended Section 147(b), 'information' for reopening an assessment includes material already on record that comes to the Assessing Officer's notice subsequent to the original assessment, not just material extraneous to the record.
The High Court explains the scope and conditions for exercising revisional power under Section 263, emphasizing that an assessment order can be revised only if it is both erroneous and prejudicial to the interest of the revenue.
A developer is entitled to proportionate deduction under Section 80IB(10) for housing projects even if certain conditions, such as unit built-up area limits, are not fully met across all units. Additionally, the conditions introduced by Section 80IB(10)(d) apply prospectively to projects commenced and sanctioned before April 1, 2005.
An assessee should not be prejudiced by differences in accounting treatment if accounting principles are duly followed and the issue is revenue neutral, as hypothetical income cannot be subjected to tax.
Section 68 was introduced to codify and clarify existing judicial principles regarding unexplained cash credits and to plug loopholes, rather than to introduce entirely new law. The Assessing Officer must conduct exhaustive inquiries and gather material before making any additions for unexplained credits.
Penalties paid for a breach of law or contravention of statutory provisions are not allowable deductions as business expenditure because they cannot be considered wholly and exclusively laid out for the purpose of the business. This principle is now enshrined in Explanation 1 to Section 37(1) of the Income-tax Act, 1961.
Revisional powers under Section 263 can be exercised even if the issue is debatable, provided the order is erroneous and prejudicial to the revenue's interest.
A transfer pricing adjustment for corporate guarantees provided by an Indian entity to its Associated Enterprises (AEs) where no fees are charged can be estimated at approximately 0.20%. The arm's length principle applies to such intra-group corporate guarantee transactions.
