Section 131(1)(d) of the Income Tax Act
Income-tax Act, 2025: s.246
Section 131(1)(d) falls under section 131 of the Income-tax Act, 1961, which corresponds to section 246 (Power regarding discovery, production of evidence, etc) of the Income-tax Act, 2025.
Read section 246 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 131(1)(d) is UmacharanSaha& Bros co. v. CIT (37 ITR 21), cited in 50 of the 80 judgments on BharatTax that turn on this section.
Leading authorities on Section 131(1)(d)
Suspicion, no matter how strong, cannot substitute for evidence in income tax proceedings. Assessments cannot be based on imagination or guesswork.
A revision order under Section 263 is valid only if the Commissioner believes the assessment order is erroneous and prejudicial to the revenue. The assessee's actions to establish bona fides are relevant to this determination.
The Commissioner can only invoke revisionary powers under section 263 if the Assessing Officer's order is erroneous and prejudicial to the revenue, requiring a prima facie finding on merits.
Revision under section 263 cannot be invoked merely because the Assessing Officer did not conduct exhaustive enquiries. Jurisdiction under section 263 is not for re-examining the assessment process or for conducting further enquiries if the initial assessment was based on the satisfaction of the Assessing Officer.
The Income Tax Appellate Tribunal (ITAT) considers arguments regarding additions made under Section 68 of the Income Tax Act, concerning loans and share application money, and arguments against such additions on merits. The tribunal's decisions often rely on the findings of lower authorities, including the Assessing Officer (AO) and Commissioner of Income Tax (Appeals) (CIT(A)).
