Section 150(1) of the Income Tax Act
Income-tax Act, 2025: s.283
Section 150(1) falls under section 150 of the Income-tax Act, 1961, which corresponds to section 283 (Provision for cases where assessment is in pursuance of an order on appeal, etc) of the Income-tax Act, 2025.
Read section 283 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 150(1) is Sonic Biochem Extractions (P.) Ltd. v. ITO ( (25 Taxmann.com 25), cited in 63 of the 98 judgments on BharatTax that turn on this section.
Leading authorities on Section 150(1)
Prior to the jurisdictional High Court's decision in CIT v. Samsung Electronics Co. Ltd. on October 15, 2011, the purchase of off-the-shelf software was not subject to TDS, and therefore, no disallowance under Section 40(a)(i) or 40(a)(ia) could be made.
Reopening assessments is permissible after four years if there was an escapement of income due to the assessee's failure to disclose material facts necessary for assessment, even if the initial assessment involved a change of opinion.
Reassessment proceedings under Section 147 are invalid if the reassessment notice is issued without the necessary sanction from the specified authority as mandated by Section 151. The sanctioning authority must apply its mind to the reasons recorded for reassessment before granting approval.
Income is taxable in India if it accrues in India, irrespective of whether it contains a profit element. Taxability of royalty or fees for technical services (FTS) is determined based on their arising in India and payment to a resident of a contracting state under a DTAA.
Reopening an assessment under section 148 beyond four years from the relevant assessment year, following an assessment under section 143(3), is only valid if there's a proven failure by the assessee to disclose all material facts. The reassessment cannot be sustained if material facts were available during the original assessment or if it's based on a mere change of opinion.
