Section 113 of the Income Tax Act
Income-tax Act, 2025: s.192
Section 113 of the Income-tax Act, 1961 corresponds to section 192 (Tax in case of block assessment of search cases) of the Income-tax Act, 2025.
Read section 192 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 113 is CIT v. Karnataka Urban Infrastructure Development and Finance Corporation (284 ITR 582), cited in 73 of the 50 judgments on BharatTax that turn on this section.
Leading authorities on Section 113
Funds received by an entity acting as a nodal agency or agent of the government for implementing specific government schemes, or income generated from such funds (like lease premiums or interest), are not taxable in the hands of the agency if held on behalf of or remitted to the government.
The law declared by a High Court is binding on all subordinate authorities and tribunals within its territorial jurisdiction.
Beneficial statutes, especially procedural provisions, can be given retrospective effect if they are enacted for the benefit of the community as a whole, applying the doctrine of fairness, even without an explicit retrospective provision.
A statute enacted for the benefit of the community as a whole may be considered retrospective in nature, even without an express provision for it.
Institutions established for specific purposes are not considered 'local authorities' for the purpose of Section 10(20) of the Income Tax Act.
Revenue authorities are not justified in assessing business income in the hands of an entity engaged in construction and development of residential and commercial structures entirely on behalf of the State, as such income constitutes income of the State and is not exigible to income tax. This principle was affirmed by the jurisdictional High Court, affirming the Tribunal's decision.
Cancellation of registration granted under section 12A of the Income Tax Act, 1961, requires examination of the assessee's activities in light of the objects of the trust and the definition of 'charitable purpose' under Section 2(15), especially concerning the proviso.
The Commissioner has the power to cancel registration under Section 12AA(3) for violations occurring prior to the amendment by the Finance Act of 2010. This power existed even before it was explicitly conferred by the amendment.
Receipts arising to an assessee in its capacity as a Special Planning Authority (SPA) are not chargeable to tax, especially when established under specific acts and in line with precedents like CIDCO.
Institutions set up for specific purposes do not qualify as 'local authorities' for the purpose of section 10(20) of the Income-tax Act. This applies even if the institution's activities are considered for the advancement of general public utility.
