“Section 4(3)(1a)”
The decision most relied on for Section 4(3)(1a) is Pepsico India Holdings (P) Ltd. v. ACIT (370 ITR 295), cited in 249 judgments on BharatTax.
Leading authorities on Section 4(3)(1a)
Section 153C of the Income-tax Act is invoked only when it is established that seized documents do not belong to the searched person, or if the searched person disclaims them; the satisfaction note must specifically indicate this fact.
Penalty under Section 271(1)(c) is not automatically imposed upon an assessee's failure to contest a quantum addition or if two views are possible; the Assessing Officer must prove the charge of concealment or inaccurate particulars. Furthermore, an Assessing Officer can disallow a claim during assessment if it is patently false on examination of facts.
The principle of taxing 'real income' means an assessee is not bound by a voluntary disallowance made under section 14A in the return of income if it was declared under a wrong belief, particularly when the Tribunal has adjudicated the matter in the assessee's favor. An assessee can resile from such a position to ensure only actual taxable income is assessed.
When no specific statutory period of limitation exists, proceedings under Section 201(1) and 201(1A) of the Income-tax Act, particularly for payments to non-residents, must be initiated within a reasonable period of four years. This limitation also applies to consequential penalty proceedings under Section 271C.
The presumption under Section 132(4A) of the Income Tax Act applies only to the person from whom books of account or documents are seized, and not to other persons.
The Assessing Officer must record satisfaction under section 153C before making additions in assessments that fall under that section. Failure to do so renders the assessments invalid.
A taxpayer is eligible for deduction under Section 80IA for developing and operating infrastructure facilities, with the decision clarifying the distinction between a contractor and a developer for this purpose.
A presumption that discrepancies found in the pre-search period would continue in the post-search period cannot be made without evidence, especially when the books of account for the post-search period do not show any discrepancies.
