Section 140A of the Income Tax Act
Income-tax Act, 2025: s.266
Section 140A of the Income-tax Act, 1961 corresponds to section 266 (Self-assessment) of the Income-tax Act, 2025.
Read section 266 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 140A is CIT v. Intel Technology India (P.) Ltd. (380 ITR 272), cited in 45 of the 125 judgments on BharatTax that turn on this section.
Leading authorities on Section 140A
When an amalgamating company ceases to exist due to a scheme of arrangement or merger, any subsequent assessment or action under the Income-tax Act initiated against that non-existent entity is void ab initio, as it is not a 'person' under Section 2(31).
Transactions involving the purchase and sale of shares constitute trading activity if the interest paid on borrowed funds for such purchases exceeds the return generated from the shares, indicating that the interest payments are commensurate with the share returns.
The intention of the assessee at the time of purchasing shares is a key criterion to determine capital gains treatment. This intention can be ascertained from how the purchase was treated in the assessee's books.
An assessee is entitled to interest under section 244A on self-assessment tax paid, with interest computed from the date of payment until the refund is granted.
An assessee is entitled to interest under Section 244A(1)(b) when a refund arises on account of payment of self-assessment tax.
Tax paid on self-assessment falls under the residuary clause of Section 244A(1)(b) for refund interest, payable from the date of self-assessment tax payment until the refund date.
Assessments under section 143(3) and 144 have distinct and different consequences. An assessment under section 143(3) involves reviewing the income tax return and requesting evidence of income and expenditures.
An assessment order under section 143(3) cannot be passed if there has been a non-compliance with a material requirement, such as failing to file a return in the proper statutory format. Non-compliance with a summons might at best lead to a penalty, which if not imposed, indicates no such non-compliance occurred.
Interest is payable by the Revenue to the assessee if the aggregate of installments of Advance Tax or TDS paid exceeds the assessed tax. A later Supreme Court bench referred the question of whether interest is payable on excess advance tax or TDS paid to a larger bench, doubting the correctness of the Sandvik Asia Limited decision on this point.