Description
Bharat Law House Pvt Ltd Supreme Court On Direct Taxes (1950-2016) 5Th Edition by Ramesh C Sharma Revised by CA Pranav Puliani
VOLUME 1
Chapter I
Preliminary
Section 1 Short title, extent and commencement
Section 2 Definitions
Section 2(1A) Agricultural income
Section 2(7) Assessee
Section 2(9) Assessment Year
Section 2(13) Business
Section 2(14) Capital asset
Section 2(15) Charitable purpose
Section 2(18) Company in which the public are substantially interested
Section 2(22) Dividends
Section 2(23) Firm, partner and partnership
Section 2(24) Income
Section 2(25A) India
Section 2(31) Person
Section 2(31)(ii) Hindu undivided family
Section 2(31)(iv) Firm
Section 2(31)(v) Association of persons or a body of individuals, whether incorporated or not
Section 2(47) Transfer
Section 3 "Previous year" defined
Chapter II
Basis of Charge
Section 4 Charge of income-tax and capital or revenue receipts
Section 5 Scope of total income
Section 6 Residence in India
Section 8 Dividend income
Section 9 Income deemed to accrue or arise in India
Chapter III
Incomes which do not form part of total income
Section 10 Incomes totally exempt from tax
Section 10(1) Agricultural income
Section 10(2) Sum received by a member of HUF
Section 10(3) Casual and non-recurring receipts
Section 10(4A) Interest earned by non-resident on NRE Deposits
Section 10(10A) Gratuity payment(s)
Section 10(10B) Retrenchment compensation received by a workman
Section 10(10C) Compensation received on voluntary retirement by specified employees
Section 10(14) Special allowances specifically granted to meet expenses
Section 10(19A) Annual Value of any palace in the occupation of a ruler
Section 10(20) Income of a local authority
Section 10(20A) Authority for housing accommodation and planning/development of cities
Section 10(22) Income of university or educational institution
Section 10(23C) Exemption to educational institutions
Section 10(23D) Income of specified mutual fund
Section 10(26) Income of Scheduled Tribe in specified areas
Section 10(29) Income of marketing authorities
Section 10A Special provision in respect of newly established undertakings in free trade zone, etc.
Sections 11 to 13 Exemption of income from property held
for charitable or religious purposes
Chapter IV
Computation of Total Income
Section 14 Heads of income
Section 14A Expenditure incurred in relation to income not includible in total income
Sections 15 to 17 Salary income
Sections 18 to 21 Interest on securities
Section 22 Income from house property
Section 23 Annual value how determined
Section 24 Deductions from income from house property
Section 27 "Owner of house property", "annual charge", etc., defined
Sections 28 & 29 Profits and gains of business or profession
Section 30 Rent, rates, taxes, repairs and insurance for buildings
Section 31 Repairs and insurance of machinery, plant and furniture
Section 32 Depreciation
Section 32A Investment allowance
Section 32AB Investment deposit account
Section 33 Development rebate
Section 33A Development allowance
Section 34 Conditions for depreciation allowance and Development rebate
Section 35 Expenditure on scientific research
Section 35B Export markets development allowance
Section 35C Agricultural Development allowance
Section 35CCA Expenditure by way of payment to Associations and Institutions for carrying out rural development programmes
Section 35E Deduction for expenditure on prospecting, etc. for certain minerals
Section 36 Other deductions
Section 36(1)(ii) Bonus or commission to employees
Section 36(1)(iii) Interest on capital borrowed for business purposes
Section 36(1)(iv) Employer's contribution to approved superannua-tion fund
Section 36(1)(v) Employer's contribution to gratuity fund
Section 36(1)(vii) Bad debts
Section 37 Business expenditure
Section 38 Building, etc., partly used for business, etc., or not exclusively so used
Section 40 Amounts not deductible
Section 40(a)(ii) Rates or tax levied on business profits
Section 40(a)(v) Payments made to or on behalf of employees
Section 40(b) Salary, interest and commission paid by firm to partners
Section 40(c) Disallowance of payments by companies to directors and substantially interested persons
Section 40A Expenses or payments not deductible in certain circumstances
Section 40A(2) Disallowance of certain payments or expenditures
Section 40A(3) Payments for expenditure made otherwise than by crossed cheque or bank draft
Section 40A(5) Ceiling on salary and perquisites to employees
Section 40A(7) Gratuity to employees
Section 41 Profits chargeable to tax
Section 41(1) Recoupment of expenditure and loss allowed as deduction
Section 41(2) Balancing charge
Section 41(4) Recovery of debts allowed as bad debts earlier
Section 42 Deduction in respect of prospecting, etc. of mineral oils
Section 43 Definitions of certain terms relevant to income from profits and gains of business or profession
Section 43(1) Actual cost of assets
Section 43(3) Plant
Section 43(5) Speculative transactions
Section 43(6) Written down value of assets
Section 43A Special provisions consequential to changes in rate of exchange of currency
Section 43B Certain deductions to be only on actual payment
Section 44AB Audit of accounts of certain persons carrying on business or profession
Section 44AC Special provision for computing profits and gains from the business of trading in certain goods
Section 44B Profits and gains of shipping business in the case of non-residents
Section 44BB Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils
Section 45 Capital gains
Section 46 Capital gains on distribution of assets by companies in liquidation
Section 47 Transactions not regarded as transfer
Section 47(iii) Transfer of capital assets under gift or will
Section 47(vii) Transfer of shares in a scheme of amalgamation
Section 48 Mode of computation
Section 49 Cost with reference to certain modes of acquisition
Section 49(2) Cost of acquisition of shares in case of amalgamation of companies
Section 50 Special provision for computation of capital gains in case of depreciable assets
Section 52 Consideration for transfer in case of under-statement
Section 54 Profit on sale of property used for residence
Section 54F Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house
Section 54G Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area
Section 55 Meaning of "adjusted", "cost of improvement" and "cost of acquisition"
Section 55(2) Cost of acquisition
Section 55A Reference to valuation officer
Section 56 Income from other sources
Section 57 Deductions
Chapter V
Income of other persons, included in
assessee's total income
Section 60 Transfer of income where there is no transfer of assets
Section 61 Revocable transfer of assets
Section 62 Transfer irrevocable for a specified period
Section 63 "Transfer" and "revocable transfer" defined
Section 64 Income of individual to include income of spouse, minor child, etc.
Section 64(1) Income of spouse and minor children includible in income of individual
Section 64(1)(i)/ Share income of spouse or minor child in
(iii) firm
Section 64(1)(iii) Minor's share income from firm
Section 64(1)(iv) Income from assets transferred to spouse
Section 64(1)(v) Income from assets transferred to minor child
Section 64(1)(vii) Income from assets transferred for the benefit of spouse or minor child
Chapter VI
Aggregation of income and set off or
carry forward of loss
Section 66 Total income
Section 67 Method of computing a partner's share in the income of firm
Section 68 Cash credits
Section 69 Unexplained investments
Section 69A Unexplained money, etc.
Section 70 Set off of loss from one source against income from another source under the same head of income
Section 71 Set off of loss from one head against income from another
Section 72 Carry forward and set off of business losses
Section 72A Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in certain cases of amalgamation
Section 73 Losses in speculation business
Section 74 Losses under the head "Capital gains"
Section 75 Losses of firms
Section 78 Carry forward and set off of losses in case of change in constitution of firm or on succession
Section 79 Carry forward and set off of losses in the case of certain companies
VOLUME 2
Chapter VIA
Deductions to be made in computing total income
Section 80 Amortization of Film Production Expenses
Section 80AA Computation of deduction under section 80M
Section 80G Deduction in respect of donations to certain funds, charitable institutions, etc.
Section 80HH Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas
Section 80HHB Deduction in respect of profits and gains from projects outside India
Section 80HHC Deduction in respect of profits retained for export business
Section 80-I Deduction in respect of profits and gains from industrial undertakings after a certain date, etc.
Section 80-IA Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.
Section 80-IB Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings
Section 80J Deduction in respect of profits and gains from newly established industrial undertakings or ships or hotel business in certain cases
Section 80K Deduction in respect of dividends attributable to profits and gains from new industrial undertakings or ships or hotel business
Section 80M Deduction in respect of certain inter-corporate dividends
Section 80-O Deduction in respect of royalties, etc., from certain foreign enterprises
Section 80P Deduction in respect of income of co-operative societies
Section 80RRA Deduction in respect of remuneration received for services rendered outside India
Section 80T Deduction in respect of long-term capital gains in the case of assessees other than companies
Chapter VII
Incomes forming part of total income on which no
income-tax is payable
Section 84 Income from newly established industrial undertakings or hotels
Chapter VIII
Rebate and reliefs
Section 88 Rebate on life insurance premia, contributions to provident funds, etc.
Section 89 Relief when salary, etc., is paid in arrears or in advance
Section 90 Agreement with foreign countries
Chapter X
Special provisions relating to avoidance of tax
Section 92 Income from transactions with non-residents, how computed in certain cases
Section 92CA Reference to transfer pricing officer
Section 93 Avoidance of income-tax by transactions resulting in transfer of income to non-residents
Section 94 Avoidance of tax by certain transactions in securities
Chapter XI
Additional income-tax on undistributed profits
Section 104 Income-tax on undistributed income of certain companies
Section 108 Savings for company in which public are substantially interested
Section 109 "Distributable income", "investment company" and "statutory percentage" defined
Chapter XII
Determination of tax in certain special cases
Section 113 Tax in the case of block assessment of search cases
Chapter XIIB
Special provisions relating to certain companies
Section 115J Special provisions relating to certain companies
Section 115JA Deemed income relating to certain companies
Section 115JB Special provision for payment of tax by certain companies
Chapter XII-H
Income-tax on Fringe Benefits
Section 115WA Fringe Benefit Tax
Chapter XIII
Income-tax authorities
Section 119 Instructions to subordinate authorities
Section 120 Transfer of cases
Section 124 Jurisdiction of assessing officers
Section 127 Power to transfer cases
Section 129 Change of incumbent of office
Section 131 Power regarding discovery, production of evidence, etc.
Section 132 Search and seizure
Section 132B Application of, seized or requisitioned assets
Section 133 Power to call for information
Section 133(6) Information useful to proceedings under Income-tax Act
Section 133A Power of survey
Section 136 Proceedings before income-tax authorities to be judicial proceedings
Section 137 Disclosure of information prohibited
Section 138 Disclosure of information respecting assessees
Chapter XIV
Procedure for assessment
Section 139 Return of income
Section 140 Return by whom to be signed
Section 141 Provisional assessment
Section 142 Special Audit
Section 143 Assessment
Section 144 Best judgment assessment
Section 144B Reference to Deputy Commissioner in certain cases
Section 145 Method of accounting
Section 146 Reopening of assessment at the instance of the assessee
Section 147 Income escaping assessment
Section 148 Issue of notice where income has escaped assessment
Section 149 Time limit for notice
Section 150 Provision for cases where assessment is in pursuance or an order on appeal, etc.
Section 151 Sanction for issue of notice
Section 153 Time limit for completion of assessments and reassessments
Section 154 Rectification of mistake
Section 155 Other amendments
Section 156 Notice of demand
Section 157 Intimation of loss
Section 158 Intimation of assessment of firm
Chapter XIVB
Special procedure for assessment of search cases
Sections 158B to 158BI
Chapter XV
Liability in special cases
Section 159 Legal representatives
Section 160 Representative assessee
Section 161 Liability of representative assessee
Section 162 Right of representative assessee to recover tax paid
Section 163 Who may be regarded as agent
Section 164 Charge of tax where share of beneficiaries unknown
Section 166 Direct assessment or recovery not barred
Section 168 Executors
Section 170 Succession to business otherwise than on death
Section 171 Assessment after partition of a Hindu undivided family
Section 172 Shipping business of non-residents
Section 176 Discontinued business
Section 177 Association dissolved or business discontinued
Section 178 Company in liquidation
Section 179 Liability of directors of private company in liquidation
Chapter XVI
Special provisions applicable to firms
Section 182 Assessment of registered firms
Section 184 Assessment of a firm
Section 185 Assessment when section 184 not complied with
Section 186 Cancellation of registration
Section 187 Change in constitution of a firm
Section 188 Succession of one firm by another firm
Section 188A Joint and several liability of partners for tax payable by firm
Section 189 Firm dissolved or business discontinued
Chapter XVII
Collection and Recovery of Tax
Section 190 Deduction at source and advance payment
Section 192 Salary
Section 194C Payments to contractors and sub-contractors
Section 194H Commission or brokerage
Section 195 Deduction for tax where payment is to be made to a non-resident
Section 197 Certificate for deduction at lower rate
Section 199 Credit for tax deducted
Section 206C Collection of tax at source
Section 207 Liability for payment of advance tax
Section 210 Payment of advance tax by the assessee of his own accord or in pursuance of order of Assessing Officer
Section 214 Interest payable by Government
Section 215 Interest payable by assessee
Section 216 Interest payable by assessee in case of underestimate, etc.
Section 217 Interest payable by assessee when no estimate made
Section 219 Credit for advance tax
Section 220 When tax payable and when assessee deemed in default
Section 220(2) Interest payable for delay in payment of tax demand
Section 220(2A) Reduction or waiver of interest payable under section 220(2)
Section 220(3) Extension of time for payment of tax in instalments
Section 220(7) Claim on the ground of restriction or remittance from foreign country
Section 221 Penalty payable when tax in default
Section 222 Certificate to Tax Recovery Officer
Section 226 Other modes of recovery
Section 231 Period for commencing recovery proceedings
Section 234 Interest payable by assessee
Sections 234A, Interest for defaults
234B & 234C
Chapter XIX
Refunds
Section 237 Refunds
Section 240 Refund of appeal
Section 242 Correctness of assessment not to be questioned
Section 244 Interest on refund where no claim is needed
Section 244A Interest on refunds
Section 245 Set off of refunds against tax remaining payable
Chapter XIXA
Settlement of Cases
Section 245C Application for settlement of cases
Section 245D Procedure on receipt of application for settlement
Section 245E Power of Settlement Commission to reopen completed proceedings
Section 245H Power of Settlement Commission to grant immunity from prosecution and penalty
Section 245-I Order of settlement to be conclusive
Section 245L Proceedings before Settlement Commission to be judicial proceedings
Chapter XIXB
Advance Rulings
Section 245N Definitions
Chapter XX
Appeals and Revision
Section 246 Appealable orders
Section 248 Appeal by person denying liability to deduct tax
Section 249 Form of appeal and limitation
Section 250 Procedure in appeal
Section 251 Powers of the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals)
Section 253 Appeals to the Appellate Tribunal
Section 254 Orders of Appellate Tribunal
Section 255 Procedure of Appellate Tribunal
Section 256 Statement of case to the High Court
General principles
Questions of fact — Illustrations
Questions of law — Illustrations
Section 257 Statement of cases to Supreme Court in certain cases
Section 258 Power of High Court or Supreme Court to require statement to be amended
Section 260 Decision of High Court or Supreme Court on the case stated
Section 260A Appeal to High Court
Section 261 Appeals to Supreme Court
Section 262 Hearing before Supreme Court
Section 263 Revision of orders prejudicial to Revenue
Section 264 Revision of other orders
Section 268A Filing of appeal or application for reference by income-tax authority
Chapter XXA
Acquisition of immovable properties in certain cases of transfer to counteract evasion of tax
Section 269C Immovable property in respect of which proceedings for acquisition may be taken
Section 269-I Vesting of property in Central Government
Section 269SS Mode of taking or accepting certain loans and advances
Chapter XXC
Purchase by Central Government of immovable
properties in certain cases of transfer
Section 269UA Definitions for purpose of Chapter XXC
Section 269UD Order by appropriate authority for purchase by Central Government of immovable property
Section 269UG Payment or deposit of consideration
Section 269UH Re-vesting of property in the transferor on failure of payment or deposit of consideration
Section 269UL Restrictions on registration of documents in respect of transfer of immovable property
Chapter XXI
Penalties imposable
Section 271 Failure to furnish returns, comply with notices, concealment of income, etc.
Section 271(1)(a) Penalty for late furnishing of return of income
Section 271(1)(c) Penalty for concealment of income and furnishing inaccurate particulars of income
Section 271(2) Registered firm liable to penalty as if unregistered firm
Section 271C Penalty for failure to deduct tax at source
Section 273 False estimate of, or failure to pay advance tax
Section 273A Power to reduce or waive penalty, etc., in certain cases
Section 274 Procedure
Section 276B Failure to pay the tax deducted at source
Chapter XXII
Offences and Prosecutions
Section 276C Wilful attempt to evade tax, etc.
Section 276CC Failure to furnish returns of income
Section 276DD Failure to comply with section 269SS
Section 277 False statement in verification, etc.
Section 279 Prosecution to be at the instance of Chief Commissioner or Commissioner
Chapter XXIIA
Annuity deposits
Chapter XXIIB
Tax Credit Certificates
Section 280ZC Tax credit certificates in relation to exports
Section 280ZD Tax credit certificates in relation to increase production of certain goods
Chapter XXIII
Miscellaneous
Section 281 Certain transfers to be void
Section 281B Provisional attachment to protect revenue
Section 282 Service of notice generally
Section 293 Bar of suits in civil courts
General principles
Writ petitions under Article 226 of the Constitution
Petitions to Supreme Court under Article 32 of the Constitution
Section 295 Power to make rules
Section 297 Repeals and savings
Section 298 Power to remove difficulties
First Schedule Insurance business
Second Schedule Procedure for recovery of tax
Fourth Schedule Recognised provident funds and approved superannuation funds and gratuity funds of unrecognised provident fund
DIVISION IA: INCOME TAX RULES, 1962
DIVISION II: WEALTH TAX
Chapter I
Preliminary
Section 2 Definitions
Section 2(e)/2(ea) Assets
Section 2(m) Net wealth
Section 2(q) Valuation date
Chapter II
Charge of wealth-tax and assets subject to such charge
Section 3 Charge of wealth-tax
Section 4 Net wealth to include certain assets
Section 5 Exemption in respect of certain assets
Section 6 Exclusion of assets and debts outside India
Section 7 Value of assets, how to be determined
Chapter IV
Assessment
Section 16A Reference to valuation officer
Section 17 Wealth escaping assessment
Section 18 Penalty for failure to furnish returns, to comply with notices and concealment of assets, etc.
Section 18B Power to reduce or waive penalty in certain cases
Section 20 Assessment after partition of a Hindu undivided family
Chapter V
Liability to assessment in special cases
Section 21 Assessment when assets are held by courts of wards, administrators-general, etc.
Chapter VI
Appeals, Revisions and References
Section 23 Appeals to Deputy Commissioner (Appeals) from orders of Assessing Officer
Section 25 Powers of Commissioner to revise orders of subordinate authorities
Section 27A Appeal to High Court
Section 29 Appeals to Supreme Court
Section 35 Rectification of mistakes
Section 38A Powers of valuation officer, etc.
Section 45 Act not to apply in certain cases
DIVISION III: GIFT TAX
Chapter I
Preliminary
Section 2 Definitions
Chapter II
Charge of gift-tax and gifts subject to such charge
Section 3 Charge of gift-tax
Section 4 Gifts to include certain transfers
Section 5 Exemption in respect of certain gifts
Section 6 Valuation of gifts how determined
Chapter VI
Appeals, Revisions and References
Section 26 Reference to High Court
DIVISION IV
VOLUNTARY DISCLOSURE SCHEME