“Section 254(4)”
The decision most relied on for Section 254(4) is CIT v. Tata Elxsi Ltd. (349 ITR 98), cited in 818 judgments on BharatTax.
Leading authorities on Section 254(4)
When computing deduction under Section 10A, if communication or telecommunication expenses are excluded from export turnover, they must also be excluded from total turnover to maintain consistency and apply the ordinary meaning of 'turnover' in context.
Sections 4 and 5 of the Income Tax Act, which define total income and chargeability, are subject to Section 90, meaning that Double Taxation Avoidance Agreements (DTAAs) override the Act's provisions in case of a conflict.
Ownership of land is not a prerequisite for claiming deduction under Section 80IB(10) of the Income-tax Act. The focus should be on whether the assessee undertook the development and construction of the housing project.
A statement recorded under Section 132(4) during a search operation holds evidentiary value, and its mere retraction is insufficient to dislodge this value unless the assessee provides evidence of coercion or inducement during its recording.
The Income Tax Appellate Tribunal (ITAT) cannot enhance an assessment or take back a benefit granted by the Assessing Officer.
Lower authorities are bound to accept the decisions of appellate authorities without reservation. If this healthy rule is not followed, it results in undue harassment to assessees and chaos in tax administration.
