Monthly Archives: January 2025

Registration under Section 12AB denied as the trust’s objects were confined to a specific religious community. Summary in Key Points: Issue: Whether a trust created for the purpose of following and propagating Jainism and benefiting the Jain community is entitled to registration under Section 12AB of the Income-tax Act, 1961. Facts: The assessee-trust, established to… Read More »

Deduction under Section 10A denied as Form 56F was not signed by an ‘Accountant’. Summary in Key Points: Issue: Whether the assessee, a company engaged in software production and export, is entitled to a deduction under Section 10A of the Income-tax Act, 1961 when the Form 56F was not signed by a Chartered Accountant as… Read More »

Exemption under Section 10(38) for Long-Term Capital Gains allowed on Penny Stocks, No Additionfor Section 68 Summary in Key Points: Issue: Whether the Assessing Officer (AO) was justified in denying the exemption under Section 10(38) for long-term capital gains (LTCG) earned from the sale of shares considered as penny stocks, and treating it as unexplained… Read More »

Stay of Demand Application and Review Rejected Without Proper Consideration – Remand to Assessing Officer Summary in Key Points: Issue: Whether the Assessing Officer’s (AO’s) rejection of the assessee’s stay of demand application and review application was valid, given that the AO did not provide adequate reasoning, consider the assessee’s submissions, or follow the guidelines… Read More »

Writ Petition Challenging Reassessment Notice Dismissed Due to Availability of Alternate Remedy Summary in Key Points: Issue: Whether a writ petition challenging a reassessment notice and assessment order under Sections 148 and 148A of the Income-tax Act, 1961 is maintainable when the assessee has already filed an appeal against the assessment order. Facts: The assessee… Read More »

Estimation of Net Profit of 10% by CIT(A) is wrong and 2.5% rate was more appropriate : ITAT Summary in Key Points: Issue 1 (Net Profit Estimation): Whether the Commissioner (Appeals) was justified in estimating the net profit rate at 10% when the assessee had consistently declared lower rates in previous and subsequent years, and… Read More »

Faceless Assessment Order Quashed for Denying Opportunity of Personal Hearing Summary in Key Points: Issue: Whether a faceless assessment order passed under Section 144B of the Income-tax Act, 1961 is valid when the assessee is denied an opportunity for a personal hearing through video conference. Facts: The Assessing Officer (AO) issued a show cause notice… Read More »