Section 271(1) of the Income Tax Act
The decision most relied on for Section 271(1) is (iv) HEIRS AND LRS OF LATE LAXMANBHAI S. PATEL v. COMMISSIONER OF INCOME TAX (HIGH COURT OF GUJARAT (327 ITR 290), cited in 54 of the 28 judgments on BharatTax that turn on this section.
Leading authorities on Section 271(1)
Additions to income based on statements recorded without providing the assessee an opportunity to cross-examine the declarants are unsustainable due to a violation of natural justice principles.
To disallow long-term capital gains, the Assessing Officer must rely on cogent proof, not mere suspicion or presumption, regarding share price manipulation or the nature of the companies involved.
When an assessment order is erroneous and prejudicial to the revenue, the Commissioner has the jurisdiction under Section 263 to revise it, which can include directing a fresh assessment that encompasses the assessment of penalties.
