INCOME TAX CASE LAWS 07.10.2026 Relevant Act Section Case Law Title Citation Brief Summary Income-tax Act, 1961 Section 2(22) Deputy Commissioner of Income Tax v. Sahara India (Firm) Click Here Where the assessee-firm, acting as an agent for SIFCL, carried payables in its books pending remittance in the ordinary course of business, such trade balances… Read More »
Setting Aside of Underlying Assessment Order Quashes Dependent Criminal Prosecution for Tax Evasion and False Verification Issue Whether criminal prosecution for willful attempt to evade tax and false verification under Sections 276C and 277 read with Section 278B remains maintainable after the underlying assessment order forming the sole basis of the complaint is set aside… Read More »
ITAT Recalls Order and Restores Appeal as Assessee Intended Only Partial Withdrawal Under MAP Scheme ITAT Recalls Order and Restores Appeal as Assessee Intended Only Partial Withdrawal Under MAP Scheme Issue Whether the Appellate Tribunal should recall its earlier order and restore an appeal under Section 254(2) when an order dismissing the entire appeal as… Read More »
High Court Will Not Disturb Concurrent Condonation Rejection Unless Findings Are Shown Perverse Issue Whether the High Court under Section 260A can re-appreciate factual findings and interfere with concurrent orders of the CIT(A) and the ITAT rejecting the condonation of a 441-day delay in filing a first appeal. Facts Delay in Appeal: For Assessment Year… Read More »
Section 153C Reassessment Lacking Specific Assessment Year Mapping in Satisfaction Note Quashed as Void Issue Whether proceedings initiated under Section 153C of the Income-tax Act, 1961 are legally valid when the satisfaction note recorded by the Assessing Officer fails to demonstrate how the seized incriminating material relates to specific assessment years. Facts Initiation of Proceedings:… Read More »
Reassessment Order and Notice Quashed as Sanction Was Granted Mechanically Without Considering Assessee’s Response Issue Whether an order under Section 148A(d) and the consequent reassessment notice under Section 148 are legally sustainable when sanction under Section 151 is granted mechanically without considering the reply filed by the assessee to the notice issued under Section 148A(b).… Read More »
Reassessment Notice Issued by Jurisdictional Officer Non-Facelessly Is Invalid and Lacks Statutory Jurisdiction Issue Whether a notice issued under Section 148 by a Jurisdictional Assessing Officer without following the automated allocation mechanism and faceless procedure mandated under Section 151A and the e-Assessment scheme is legally valid. Facts Reassessment Proceedings: Reassessment proceedings under Section 148 of… Read More »
Reassessment Notice Issued by Jurisdictional Assessing Officer Under Faceless Regime Quashed for Lacking Jurisdiction Issue Whether, under the faceless assessment regime governed by Sections 147, 148, 144B, 151A, and 132 of the Income-tax Act, 1961, a notice issued under Section 148 by a Jurisdictional Assessing Officer (JAO)—even if based on search and seizure information and… Read More »
PBDIT Adopted as PLI for Heavy Fixed Asset Investments and Mandatory Loss Set-Off Upheld Issue Selection of Profit Level Indicator (PLI): Whether Profit Before Depreciation, Interest, and Tax (PBDIT) should be adopted as the most appropriate PLI under TNMM when an assessee’s net profit is significantly affected by high depreciation resulting from substantial investments in… Read More »
ITAT Remands Ex-Parte Assessment of Unexplained Cash Credits to AO for Fresh Consideration Subject to Payment of ₹1 Lakh Cost Issue Whether an ex-parte assessment making substantial additions for unexplained cash credits under Section 68 and ad-hoc expenditure disallowances under Section 144/144B can be remanded to the Assessing Officer for de-novo consideration when the assessee… Read More »