Section 115JAA of the Income Tax Act

Income-tax Act, 2025: s.206

Section 115JAA of the Income-tax Act, 1961 corresponds to section 206 (Special provision for minimum alternate tax and alternate minimum tax) of the Income-tax Act, 2025.

Read section 206 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 115JAA is CIT v. Hindustan Organic Chemicals Limited (366 ITR 1), cited in 206 of the 274 judgments on BharatTax that turn on this section.

Leading authorities on Section 115JAA

CIT v. Hindustan Organic Chemicals Limited
366 ITR 1 · 2014 · High Court
206
citing judgments

Employees' contribution towards Provident Fund (PF) and Employees' State Insurance Corporation (ESIC) is allowable as a deduction under Section 36(1)(va) read with Section 43B if deposited before the due date of filing the income tax return, even if deposited after the expiry of the statutory time period specified in the applicable fund's statute.

R.B. Jodha Mal Kuthiala v. CIT
82 ITR 570 · 1971 · Supreme Court
131
citing judgments

Tax laws must be interpreted reasonably and in consonance with justice, even though equitable considerations are generally irrelevant in their interpretation.

Kolhapur Canesugar Works Ltd. v. Union of India
2 SCC 536 · 2000 · Reported
117
citing judgments

Section 6 of the General Clauses Act, which preserves rights and liabilities under repealed statutes, does not automatically apply to a mere omission of a statutory provision unless the omitting enactment specifically provides for it, thereby affecting the continuation of pending proceedings.

CIT v. Sutlej Cotton Mills Supply Agency Ltd.
100 ITR 706 · 1975 · Supreme Court
63
citing judgments

An investment retains its capital nature even if its resale was foreseen and contemplated when made, and the possibility of enhanced values motivated the investment. The classification as a capital asset or stock-in-trade depends on factors like the assessee's intention, frequency of transactions, and acquisition funding.

DIT v. Escorts Cardiac Diseases Hospital
300 ITR 75 · 2008 · High Court
59
citing judgments

Expenditure incurred by an assessee in one assessment year, which is allowable as a deduction in that year, can be taxed in a subsequent year if it is written back. The deduction in the earlier year is a prerequisite for taxation in the subsequent year.

CIT v. Shambhu Investment Pvt. Ltd.
249 ITR 47 · 2001 · High Court
57
citing judgments

Income from letting out immovable property, even with ancillary services, is taxable as 'Income from House Property' if the dominant intention is to exploit the property itself, not to run a complex business providing integrated services. The classification depends on the assessee's primary object in exploiting the property.

H.A. Shah & Co. v. CIT
30 ITR 618 · 1956 · High Court
51
citing judgments

The principle of res judicata or estoppel does not strictly apply to Income Tax authorities, including the Tribunal. However, an earlier decision on the same question should not be reopened if it was arrived at after due inquiry, was not arbitrary or perverse, and no fresh facts are presented.

R 603 Mad. (14) Well Intertrade P. Ltd vs. CIT, 308 ITR 22 (Del) (15) Sitara Diamond P. Ltd. v. DCIT
343 ITR 183 · 2012 · High Court
40
citing judgments

Reopening assessment beyond four years under Section 147 is permissible only if the assessee failed to disclose fully and truly the material facts necessary for assessment. Mere change of opinion is not a valid ground for reopening.

Niko Resources Ltd. v. Union of India
374 ITR 369 · 2015 · High Court
40
citing judgments

The retrospective insertion of an Explanation to Section 80IB(9) of the Income Tax Act is unconstitutional. Blocks licensed under a single contract cannot be treated as a single undertaking for the purpose of deduction under Section 80IB(9).

CIT v. Batra Bhatta Company
321 ITR 526 · 2010 · High Court
38
citing judgments

An assessment is invalid if the Assessing Officer (AO) seeks only to ascertain the source of funds without forming a belief, based on tangible material, that income chargeable to tax has escaped assessment. A mere expression of doubt or a need for deeper scrutiny without any supporting evidence does not justify invoking reassessment powers.

Judgments on Section 115JAA