Additions Made in Section 153A Assessment Without Incriminating Material Found During Search Are Illegal

By | October 26, 2026
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Additions Made in Section 153A Assessment Without Incriminating Material Found During Search Are Illegal Issue Whether additions made in an assessment completed under Section 153A are legally sustainable when no demonstrable incriminating material was seized during the course of the search? Facts Assessee Profile: The assessee’s premises were subjected to search and seizure operations for… Read More »

Delay in Filing Return for Section 80-IBA Deduction Is Condonable Under Section 119(2)(b) Pending Appeal

By | October 26, 2026
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Delay in Filing Return for Section 80-IBA Deduction Is Condonable Under Section 119(2)(b) Pending Appeal Issue Whether an application for condonation of delay in filing an income tax return under Section 119(2)(b)—filed to claim a Section 80-IBA deduction—can be entertained and granted even after an assessment order has been passed and an appeal remains pending… Read More »

Demonetisation Cash Deposits Sourced from Earlier Withdrawals and Recorded in Books Are Not Taxable under Section 69A

By | October 26, 2026
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Demonetisation Cash Deposits Sourced from Earlier Withdrawals and Recorded in Books Are Not Taxable under Section 69A Issue Whether cash deposited in bank accounts during the demonetisation period can be treated as unexplained money under Section 69A and taxed under Section 115BBE when the assessee demonstrates that the deposits originated from earlier cash withdrawals made… Read More »

Unaccounted Stock Commingled with Business Inventory Is Business Income, While Unreconciled Excess Cash Remains Unexplained Money

By | October 26, 2026
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Unaccounted Stock Commingled with Business Inventory Is Business Income, While Unreconciled Excess Cash Remains Unexplained Money Issue Whether excess physical stock of traded goods found during a survey and commingled with regular inventory should be assessed as business income or as unexplained investment under Section 69, and whether Section 115BBE applies? Whether unreconciled excess cash… Read More »

Declaration Under Vivad Se Vishwas Scheme Covers Only Original Assessment, While Reassessment Addition Made Without Details Is Void

By | October 26, 2026
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Declaration Under Vivad Se Vishwas Scheme Covers Only Original Assessment, While Reassessment Addition Made Without Details Is Void Issue Whether a settlement declaration filed under the Direct Tax Vivad Se Vishwas Act, 2020 with respect to an original assessment order under Section 143(3) also covers additions made in subsequent reassessment proceedings under Section 147? Whether… Read More »

Reassessment Without Pre-Notice Information and Section 56(2)(x) Tax on Proportionate Rights Shares Are Invalid

By | October 26, 2026
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Reassessment Without Pre-Notice Information and Section 56(2)(x) Tax on Proportionate Rights Shares Are Invalid Issue Whether a reassessment notice issued under Section 148A without disclosing the material information forming the basis of alleged escapement can be cured by supplying information after the Section 149 limitation period has expired? Whether the difference between the fair market… Read More »

Interest under Section 28 of Land Acquisition Act is part of compensation, exempting capital gains under Section 10(37)

By | October 26, 2026
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Interest under Section 28 of Land Acquisition Act is part of compensation, exempting capital gains under Section 10(37) Issue Whether interest received under Section 28 of the Land Acquisition Act, 1894 on compulsory acquisition of agricultural land forms part of enhanced compensation exempt under Section 10(37), and whether a revision under Section 263 by the… Read More »

GST Reversal Provision Permissible as Business Expenditure in Correct Financial Year Upon Assessing Officer Verification

By | October 26, 2026
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GST Reversal Provision Permissible as Business Expenditure in Correct Financial Year Upon Assessing Officer Verification Issue Whether a provision made for GST reversal under rules 42 and 43 of the CGST Rules, 2017 is allowable as business expenditure under section 37(1), and in which specific assessment year (AY 2022-23 vs. AY 2023-24) the deduction should… Read More »

Brought-forward R&D losses forgone under section 35(2AB) are independently re-examinable under sections 35(1) or 37(1) for section 115BAA set-off.

By | October 26, 2026
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Brought-forward R&D losses forgone under section 35(2AB) are independently re-examinable under sections 35(1) or 37(1) for section 115BAA set-off. Issue Whether carried-forward R&D expenditure loss, originally claimed under section 35(2AB) with weighted deduction but later forgone to actual expenditure, can be re-examined and allowed under sections 35(1)(i), 35(1)(iv), or 37(1) for set-off under the concessional… Read More »

Transfer pricing adjustments on bank guarantees and loan support services are legally unsustainable without proper FAR analysis.

By | October 26, 2026
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Transfer pricing adjustments on bank guarantees and loan support services are legally unsustainable without proper FAR analysis. Issue Whether transfer pricing adjustments made on counter/back-to-back guarantees (without establishing FAR comparability or data confrontation) and the arbitrary attribution of 50 percent net interest/fee income for loan support services (without a prescribed method or comparables) are sustainable?… Read More »