“Section 75(1)”
The decision most relied on for Section 75(1) is Smt Dayawanti v. CIT (75 Taxmann.com 308), cited in 131 judgments on BharatTax.
Leading authorities on Section 75(1)
Additions to income based on statements recorded under section 132(4) during a search are valid, and such statements possess evidentiary value even if later retracted. Assessments made under section 153A, relying on these statements, are valid if completed within the prescribed time limits.
The mere absence of customer addresses, particularly for cash sales, in the books of account is not a sufficient ground to reject the books or to cast suspicion on the genuineness of the transactions.
The entry in the books of accounts is not determinative of the true nature of a transaction for income tax purposes; the substance of the transaction, rather than its accounting treatment, governs its taxability and deductibility.
The Assessing Officer must record a specific finding that the method of accounting adopted by the assessee is unacceptable or that the accounts are irregular before rejecting them. Mere high percentage of dead loss in a spinning mill does not automatically lead to an inference of suppressed production or justify an addition by way of estimate if record-keeping of wastage is not feasible.
The judgment addresses situations where the assessing officer's findings might be contradictory, particularly when relying on sales based on books that have already been rejected.
When considering a deduction claim under Section 80HHC, the provisions of Section 80IA(9) must be applied. The formation of the Assessing Officer's belief for issuing a notice is subject to judicial review based on whether there was relevant material for a reasonable person to form that belief.
Penalty cannot be imposed when the addition to income is solely on account of the valuation officer's estimation of fair market value.
The case is cited for the proposition that deduction under Section 80IA(4) is available for infrastructure facilities that serve a public purpose.
