Section 155 of the Income Tax Act
Income-tax Act, 2025: s.288
Section 155 of the Income-tax Act, 1961 corresponds to section 288 (Other amendments) of the Income-tax Act, 2025.
Read section 288 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 155 is CIT v. Karnataka Urban Infrastructure Development and Finance Corporation (284 ITR 582), cited in 73 of the 96 judgments on BharatTax that turn on this section.
Leading authorities on Section 155
Funds received by an entity acting as a nodal agency or agent of the government for implementing specific government schemes, or income generated from such funds (like lease premiums or interest), are not taxable in the hands of the agency if held on behalf of or remitted to the government.
Natural justice, including the right to a reasonable opportunity of being heard, must be afforded to the assessee, especially when a rectification order enhances the assessment.
Tribunal decisions for a particular assessment year must be followed based on the principle of consistency, even if the assessee is litigating the same issue before the High Court.
The actual cost of an asset for depreciation purposes is the cost to the assessee, reduced by any portion of that cost met by another person. Revaluation of assets motivated by inflating depreciation claims, rather than genuine business needs, is not permissible.
An assessee is entitled to interest under Section 244A(1)(b) when a refund arises on account of payment of self-assessment tax.
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.
