Section 2(47)(vi) of the Income Tax Act
The decision most relied on for Section 2(47)(vi) is 7. CIT v. MR.P.FIRM.MUAR (56 ITR 67), cited in 127 of the 43 judgments on BharatTax that turn on this section.
Leading authorities on Section 2(47)(vi)
A taxpayer can raise a plea that their income is not taxable, even if they have previously made an agreement regarding the quantification of taxable income. The principle of estoppel does not apply against a settled position in law.
Tax authorities are obligated to act in accordance with the law and ensure only legitimate taxes are collected, assisting assessees who have been over-assessed due to mistake or misconception.
There can be no estoppel against the statute, meaning tax cannot be levied or collected without express authority of law. An appellate authority may adjudicate additional claims or legal contentions to ensure the correct tax liability is determined.
Income tax authorities are obligated to assist assessees who are over-assessed due to mistake, misconception, or lack of proper instruction, ensuring only legitimate taxes are collected.
A tax cannot be levied if it is not permitted under the Act, even if the doctrine of estoppel might otherwise apply. There can be no estoppel against a statute, and a party is entitled to relief if tax is levied or collected without legal authority.
