Commr.Of Income Tax-I,New Delhi vs Vatika Township P.Ltd

The Supreme Court examined the applicability of the proviso to Section 113 of the Income Tax Act, determining that it mandates a specific condition for the imposition of tax on the income of the assessees. The Court held that the Department must adhere to the procedural requirements outlined in the Act, and failure to do so would render the tax demand invalid. Consequently, the appeals filed by the Commissioner of Income Tax were dismissed, affirming the decisions of the lower courts in favor of the assessees.