Reopening Reassessment Solely to Verify Bank Cash Deposits Without Tangible Material Is Without Jurisdiction

By | August 11, 2026
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Reopening Reassessment Solely to Verify Bank Cash Deposits Without Tangible Material Is Without Jurisdiction Issue Whether the Assessing Officer can validly initiate reassessment proceedings under Section 147/148 solely to verify the source of cash deposits in an assessee’s bank account, without possessing independent tangible material to form a belief that income chargeable to tax has… Read More »

INCOME TAX CASE LAWS 11.08.2026

By | August 11, 2026
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INCOME TAX CASE LAWS 11.08.2026 Section Case Law Title Citation Relevant Act Brief Summary Section 2(47) Smt. Mrunalini Kalagara v. Income-tax officer Click Here Income-tax Act, 1961 Transfer of immovable property via a registered sale deed constitutes a “transfer” attracting capital gains under Section 45, even if coercion or non-receipt of consideration is claimed. Matter… Read More »

Prosecution under Section 276CC Is Impermissible and Liable to Be Quashed When No Tax Is Outstanding Due to Prepaid TDS

By | August 11, 2026
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Prosecution under Section 276CC Is Impermissible and Liable to Be Quashed When No Tax Is Outstanding Due to Prepaid TDS Prosecution under Section 276CC Is Impermissible and Liable to Be Quashed When No Tax Is Outstanding Due to Prepaid TDS Issue Whether criminal prosecution under Section 276CC for failure to furnish a return of income… Read More »

Penalty Under Section 271B Is Sustainable When Failure to Audit Accounts Is Backed by Reasonable Cause

By | August 11, 2026
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Penalty Under Section 271B Is Sustainable When Failure to Audit Accounts Is Backed by Reasonable Cause Issue Whether penalty under Section 271B for failure to get accounts audited under Section 44AB can be sustained when the assessee demonstrates reasonable cause under Section 273B and the return of income is accepted without any addition. Facts Business… Read More »

Penalty Under Section 270A Is Unsustainable Once Underlying Assessment Order and FTS Adjustment Are Quashed

By | August 11, 2026
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Penalty Under Section 270A Is Unsustainable Once Underlying Assessment Order and FTS Adjustment Are Quashed Penalty Under Section 270A Is Unsustainable Once Underlying Assessment Order and FTS Adjustment Are Quashed Issue Whether a penalty under Section 270A for misreporting of income can be sustained when the underlying assessment order and Fee for Technical Services (FTS)… Read More »

Recharacterization of Capital Gains as Dividend With Reduced Tax Liability Does Not Warrant Penalty Under Section 270A

By | August 11, 2026
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Recharacterization of Capital Gains as Dividend With Reduced Tax Liability Does Not Warrant Penalty Under Section 270A Issue Whether initiation of penalty proceedings under Section 270A for under-reporting or misreporting of income is legally sustainable when the recharacterization of capital gains into dividend income by the Assessing Officer results in no increase in total assessed… Read More »

Assessment Orders Passed Ex Parte Against a Deceased Assessee Warrant Remand to AO for Fresh Adjudication

By | August 11, 2026
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Assessment Orders Passed Ex Parte Against a Deceased Assessee Warrant Remand to AO for Fresh Adjudication Issue Whether ex parte assessment and appellate orders passed due to non-representation by a deceased assessee should be set aside and remanded to the Assessing Officer for fresh adjudication to uphold the principles of natural justice. Facts Ex Parte… Read More »

Sole Executor Administering Deceased Estate Must Be Assessed as an Individual at Normal Slab Rates

By | August 11, 2026
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Sole Executor Administering Deceased Estate Must Be Assessed as an Individual at Normal Slab Rates Issue Whether the income of a deceased person’s estate administered by a sole executor should be assessed in the hands of the executor as an individual at normal slab rates under Section 168, rather than as an Artificial Juridical Person… Read More »

Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2

By | August 11, 2026
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Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2 Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2 Issue Whether the assumption of jurisdiction under Section 153A beyond the ordinary six-year block is legally sustainable when the seized material fails to establish that… Read More »

Orders Issued Electronically Without Initial DIN Are Valid If Subsequently Communicated With Correct DIN

By | August 11, 2026
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Orders Issued Electronically Without Initial DIN Are Valid If Subsequently Communicated With Correct DIN Issue Whether DRP directions and revisional orders under Section 263 initially communicated electronically without a Document Identification Number (DIN)—or containing a minor typographical error in the manually written DIN—are invalid under CBDT Circular No. 19/2019, when DINs were later generated and… Read More »