Section 149(1) of the Income Tax Act
Income-tax Act, 2025: s.282
Section 149(1) falls under section 149 of the Income-tax Act, 1961, which corresponds to section 282 (Time limit for notices under sections 280 and 281) of the Income-tax Act, 2025.
Read section 282 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 149(1) is 18 Media Pvt. Ltd. v. ADIT (International Taxation) (44 Taxmann.com 1), cited in 85 of the 128 judgments on BharatTax that turn on this section.
Leading authorities on Section 149(1)
The Mumbai Tribunal has held that the term 'process' in relation to royalty under Section 9(1)(vi) of the Income Tax Act is not defined and must be considered within the contemplation of the term, potentially impacting its application under DTAAs. This decision distinguished itself from the facts of other cases, including those involving broadcasting and advertising airtime.
Third-party statements cannot be used against an assessee without providing an opportunity for cross-examination. This ensures adherence to principles of natural justice.
An assessment order is not erroneous and prejudicial to the interests of the revenue if the Assessing Officer conducted an adequate inquiry, preventing the initiation of revision proceedings under Section 263.
Section 149(1)(b) of the Income-tax Act, as amended, limits the reopening of assessments to cases where the escaped income exceeds fifty lakh rupees when the period between the end of the relevant assessment year and the date of notice issuance is between three and ten years. The proviso to Section 149(1)(b) protects assesses by limiting its retrospective operation.
The proportion of profits arising or accruing in India from sales, in the absence of a fixed formula, involves an element of estimation and approximation, not exact precision.
