Section 44B of the Income Tax Act
Income-tax Act, 2025: s.61
Section 44B of the Income-tax Act, 1961 corresponds to section 61 (Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents) of the Income-tax Act, 2025.
Read section 61 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 44B is CIT v. PKN (60 ITR 65), cited in 23 of the 106 judgments on BharatTax that turn on this section.
Leading authorities on Section 44B
A purchase made without the intention to resell, where a resale occurs due to changed circumstances, is considered a realization of capital and does not make the transaction a business venture. However, if a purchase is made with the intention to resell, the nature of the venture (capital account or trade) depends on the assessee's conduct and case circumstances.
