Interest payable under section 214 by government on excess payment of advance tax is upto to the date of regular assessment, which means mean assessment u/s 143 (3) or 144 only and not reassessment.
Upto 1.4.75 interest under section 214 is payable from first day of assessment year to the date of first assessment order on the amount of tax determined in the first Assessment order.
From 1.4.85 period is the same but interest is payable on the amount as varied in appeal etc.
From 1.4.89 interest under section 244(1A) is payable from the date when tax was paid till the date it is refunded - on the amount of tax paid in excess of tax liabilities determined as per appellate order.
[Followed/relied/applied- 218 ITR 499 (PAT); 221 ITR 33(KER); 225 ITR 214N (MAD); 230 ITR 76 (BOM); 230 ITR 560 (CAL); CESC - VS- CIT 233 ITR 50(SC); 234 ITR 1(BOM); 234 ITR 271(PH; 234 ITR 501 (DEL); 237 ITR 278 (BOM); 243 ITR 616 (GUJ); 244 ITR 665 (KER); 245 ITR 464(MAD); 249 ITR 456 (CAL); 249 ITR 756 (BOM); 252 ITR 542 (MAD) 254 ITR 641 (MAD); 256 ITR 596 (CAL); (Also - 232 ITR 318 (SC)]

Asset (cash) was transferred to a minor child this amount was utilized for purchase of house property, which was utilized for assessee's business. The house property was sold after eight years when the child was still minor. The capital gains arising on sale is includible in the total income of the assessee.
Though cash was gifted to minor child but this was utilized for purchase of house property. It was only a case of substitution of one form of property by another. The definition of income includes Capital Gains.

[Followed - IOT - Vs Mewalal Dwarka Prasad 176 ITR 529 (SC)] If assessment could be reopened under section 147 (b) on the basis of information but were time barred, cannot be now reopened under section 147(a). those items barred by limitation u/s 147(b) could not be covered under section 147(a)
[Relied in 242 ITR 487 (Mad)]

Assessment order errosneously described as passed under section 16(3) but purported to be under section 16(1) is valid.

Registration - liquor income in the name of individual - license condition specifically prohibited formation of partnership by licensee. Partnership formed in violation of abkari condition is not entitled to registration. There is no fundamental right to deal or trade in intoxicating liquor.
[Applied/followed in 223 ITR 209 (Ker); 234 ITR (SC); 234 ITR 595 (P &H); 234 ITR 628 (AP); 235 ITR 594 (Ker); 249 ITR 681 (SC); 254 ITR 230 (SC); 256 ITR 177(SC); CIT- Vs Friends & Co.- Firm constituted in violation of Arms Act, is not entitled to Registration.]

Liability to pay sales tax comes, as soon are sales are made. Appeal against Sales Tax Assessment Order would not affect accrual of liability (Kedar Nath Jute Manufacturing Co.Ltd - Vs- CIT 82 ITR 363 followed).
[This is further followed/replied in - 224 ITR 557(SC); 230 ITR 288 (Mad); 237 ITR 488 (Mad);]

Where amount is credited to contingency reserve fund under statutory provisions of the Electricity (Supply) Act 1948, there is no diversion by overriding title and there is no expenditure of amount. It is not deductible as business expenditure.
[Followed/ applied in - 227 ITR 557 (SC); 230 ITR 288 (Mad);]

Under 1922 Act there was an opinion available to A.O. either to tax AOP or individual members. But no such option is available under 1961 Act. Even where members are assessed individually, there is no bar to assess the AOP on the same income.
If income belongs to correct person (AOP) it has to be taxed in the hands of AOP. Mere because a wrong person is taxed with reference to a particular income, the A. O. is not precluded from taxing that income in the hands of right person.
[Followed in - 223 ITR 504 (Ker); 234 ITR 319 (Bom); 240 ITR 402 (Mad); 244 ITR 461 (Mad.)]

Deduction under section 81 is available to a co-operative society bank if it is engaged in carrying on of the business of banking or providing credit facilities to member societies. Reserve fund of the apex society was invested in government securities as per instructions of the State Government and such fund could not be utilized for credit facility/ working capital. Interest was earned on government securities forming part of Reserve Fund. Not entitled to special deduction u/s 81.
Followed in 223 ITR 55(Raj); 225 ITR 421 (MP); 250 ITR 229 (Guj);
[But overruled in CIT - Vs - Karnataka State Cooperative Apex Bank 251 ITR 194 (SC)]

Pre-incorporation profits cannot be assessed in the hands of the company, as it did not come into existence. The person who carried on the business in the pre-incorporation period is liable for tax.