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1 - 6 of 6 (0.75 seconds)Section 48 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax vs Bharat Petroleum Corporation Ltd. on 21 November, 1990
6.8 In the case of Bharat Petroleum Corporation Ltd. (supra), it has
been held that an income accrues when the assessee gets a legal right
to enforce the amount against the debtor. In this sense, income might
have accrued in different years but by dint of fiction contained in
section 45(1), income accruing in different years or received in
different years is chargeable in the year in which transfer takes place.
Commissioner Of Income-Tax, Gujarat vs Ashokbhai Chimanbhai on 20 October, 1964
The Court was clear
that Section 45 is the charging section and ordinarily acquires primacy whereas
Section 48 is merely computing mechanism. However, the Court at the same time
said that in order to arrive at chargeability of taxation both the sections have to be
looked into and read together. There cannot be any quarrel with that proposition.
Equally, the decision of Ashokbhai Chimanbhai (supra) was in the context of
disruption of Hindu Undivided Family where profits of business have to be accounted
for in different periods. The observations made by the Court as to what constitutes
accrued for the purpose of income tax no doubt would apply but at the same time this
Court notices that they are of a general character.
The Income Tax Act, 1961
Commissioner Of Income Tax, Bangalore ... vs B. C. Srinivasa Setty, Etc. Etc on 19 February, 1981
5. The appellant‟s counsel relied upon the judgments cited before the Tribunal.
He submits that decision of the Supreme Court in CIT Vs. B C Srinivasa Shetty, AIR
1981 SC 972 = (1981) 128 ITR 294 (SC) lays down that the provisions of Section 45
are not to be read in isolation but have to be read along with Section 48 which have to be
ITA 423 of 2012 Page 7 of 10
considered by the Court in order to arrive at the true nature of the transactions.
Particular emphasis was given to the following observations :
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