“Section 158(1)”
The decision most relied on for Section 158(1) is CIT v. Reliance Petroproducts Pvt. Ltd. (322 ITR 158), cited in 2,228 judgments on BharatTax.
Leading authorities on Section 158(1)
Penalty under Section 271(1)(c) for furnishing inaccurate particulars or concealment of income is not automatically leviable if the assessee has made a full disclosure of all particulars and the addition or disallowance arises from a difference of opinion.
Under the mercantile system of accounting, interest income accrues and is taxable in the year it arises, even for "sticky" or doubtful loans, as the right to receive the income is paramount, not its actual receipt, provided there is an agreement for payment.
The expression 'as far as possible' means that a prescribed procedure is to be followed in its entirety unless certain provisions are not practically applicable. This interpretation allows for flexibility in applying procedural aspects where strict adherence is not feasible.
A penalty for concealment of income or furnishing inaccurate particulars is not leviable if the assessee has made a full and true disclosure of material facts. The absence of inaccurate particulars in the return means the conditions for penalty under Section 271(1)(c) are not met.
Reopening of assessment is invalid if based on suspicion, non-existent, or factually incorrect reasons. The Assessing Officer must apply their mind and verify assessment records before issuing a notice for reassessment.
An unsigned paper containing an allocation of profits among partners lacks evidentiary value. Loose papers seized generally cannot be considered accounts for legal purposes.
