“Section 173(2)”
The decision most relied on for Section 173(2) is CIT v. Motilal Hirabhai Spg. And Wvg. Co. Ltd. (113 ITR 173), cited in 49 judgments on BharatTax.
Leading authorities on Section 173(2)
The determination of whether share transactions constitute a business activity or an investment depends on the facts of the case. Factors like volume, frequency, and regularity indicate business activity, irrespective of how such transactions are presented in accounts.
A revision order under Section 263 cannot be passed by the Commissioner merely because the Assessing Officer could have made more inquiries; it requires a finding of total non-application of mind by the Assessing Officer.
Revisionary power under Section 263 cannot be exercised arbitrarily; it has limits and does not apply to every inadequacy in the Assessing Officer's inquiry or verification.
A revision order under section 263 of the Income-tax Act cannot be passed if the Assessing Officer has considered the material before him, even if the Revenue later disagrees with his conclusion.
Grounds raised by the assessee against the validity of approval granted under section 153D of the Income Tax Act are dismissed.
If land is recorded as agricultural land in revenue records, it is considered agricultural land for tax purposes, entitling the assessee to exemption from tax.
The annual value of a property lying vacant is assessed at NIL under Section 23(1)(c) of the Income Tax Act, 1961.
Payments made through a running account in the ordinary course of business are not to be treated as advances or loans under section 2(22)(e) of the Income Tax Act, and therefore not deemed dividend.
