Section 144C(2) of the Income Tax Act

Income-tax Act, 2025: s.275

Section 144C(2) falls under section 144C of the Income-tax Act, 1961, which corresponds to section 275 (Reference to Dispute Resolution Panel) of the Income-tax Act, 2025.

Read section 275 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 144C(2) is Sir Kikabhai Premchand v. CIT (116 ITR 425), cited in 27 of the 34 judgments on BharatTax that turn on this section.

Leading authorities on Section 144C(2)

Sir Kikabhai Premchand v. CIT
116 ITR 425 · 1979 · High Court
27
citing judgments

A person cannot enter into a contract with themselves, meaning no profit or loss can arise from self-dealing. This principle applies to the computation of profits under domestic income tax law but does not necessarily extend to profit attribution under tax treaties for permanent establishments.

(India) (P.) Ltd. v. ITO
87 Taxmann.com 251 · 2017 · High Court
25
citing judgments

Interest on outstanding receivables arising during business is considered an international transaction under the definition of 'capital financing'.

Smt. Saroj Aggarwal v. CIT
156 ITR 497 · 1985 · Supreme Court
20
citing judgments

Taxation provisions should be interpreted equitably and justly, avoiding hyper-technicality. Courts should view facts naturally, considering circumstances and drawing inferences that promote justice and equity when there are multiple interpretations and no dishonest motive.

Jitendra Mohan v. ITO
11 SOT 594 · 2007 · ITAT
18
citing judgments

The term 'property' in Section 2(14) of the Income Tax Act has the widest amplitude, including any right a person holds in a capital asset. The date of allotment of a property, rather than the date of possession or conveyance deed, is relevant for computing the holding period for capital gains.

PCIT v. Vembu Vaidyanathan
108 Taxmann.com 339 · 2019 · Supreme Court
13
citing judgments

A Special Leave Petition filed by the Income Tax Department against a decision concerning the computation of capital gains or related issues was dismissed by the Supreme Court.

Spencers & Co. Ltd. 132TTJ 468 (Mum) Ms. Neeta A Patel v. ITO
137 TTJ 307 · 2011 · ITAT
13
citing judgments

A right to a capital asset can exist even without formal ownership through a registered conveyance deed, such as the right derived from an agreement to allot a flat from a builder. This right itself constitutes a capital asset.

CIT v. A Suresh Rao
223 Taxmann 228 · 2014 · High Court
10
citing judgments

The period for which a capital asset is 'held' by an assessee, for the purpose of computing capital gains, is determined by the date when the assessee acquired rights over the asset, not necessarily the date of registration or possession.

Nirmal Kumar Seth v. CIT
17 Taxmann.com 127 · 2012 · High Court
8
citing judgments
Transwitch India (P.) Ltd. v. Dy. CIT
21 Taxmann.com 257 · 2012 · High Court
8
citing judgments

Judgments on Section 144C(2)

M/S. Philips Electronics Nederland B.V., Kolkata vs. A.C.I.T.(International Taxation), Circle - 2(1), Kolkata

In the result, appeal of the assessee is allowed

ITA 134/KOL/2023[2020-2021]Status: DisposedITAT Kolkata30 Apr 2025AY 2020-2021

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmaआयकर अपील सं/Ita No.134/Kol/2023 (नििाारण वर्ा / Assessment Year : 2020-2021) M/S Philips Electronics Vs Acit(International Taxation), Nederland B.V. Circle-2(1), Kolkata C/O Deloitte Haskins & Sells Llp Bengal Intelligent Park, Building Omega, 13Th& 14Th Floor, Block- Ep & Gp, Sector-V, Salt Lake Electronic Complex, Kolkata- 700091 Pan No. :Aafcp4361F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररतीकीओरसे /Assessee By : Shri Ketan Ved, Ar राजस्वकीओरसे /Revenue By : Shri Guru Bhashyam, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 06/02/2025 घोषणा की तारीख/Date Of Pronouncement : 30/04/2025 आदेश / O R D E R Per Rajesh Kumar, Am: This Is An Appeal Filed By The Assessee Against The Order Dated 31.12.2022, Passed By The Acit, Circle-2(1), It, Kolkata Giving Effect To The Direction Given By The Dispute Resolution Panel-2, New Delhi(In Short The ‘Drp’), Dated 04.11.2022, Thereby Finalizing The Assessment Order In Accordance With The Provisions Of Section 144C(13) R.W.S. 143(3) Of The Act. 2. At The Outset, Ld. Ar Drew Our Attention To The Additional Ground Filed By The Assessee & Submitted That The Appeal Of The Assessee May Be Decided On The Following Additional Grounds Taken By The Assessee :-

For Appellant: Shri Ketan Ved, ARFor Respondent: Shri Guru Bhashyam, CIT-DR
Section 142(1)Section 143(2)Section 143(3)Section 144CSection 144C(13)Section 156Section 90(2)