Daily Archives: February 26, 2025

Reassessment Proceedings Quashed for Lack of Jurisdiction, Notice issued by AO Jaipur  , Assessee was carrying business in Delhi Issue: Whether the reassessment proceedings initiated against the assessee were valid when the notice under Section 148 of the Income-tax Act, 1961, was issued by an Assessing Officer (AO) who lacked territorial jurisdiction over the assessee’s… Read More »

Capital contribution from partners not treated as unexplained cash credit. Clarification on Commissioner’s Powers, Unexplained Investments, and Cash Credits Key Issues and Decisions: I. Powers of Commissioner (Appeals): Issue: Whether the Commissioner (Appeals) can enhance an assessment when the Principal Commissioner has already revised the assessment order under Section 263 and the matter has been… Read More »

Reassessment invalid due Notice issued by  non-jurisdictional ITO and insufficient evidence. Common Facts: The assessee filed its return of income for the assessment year 2014-15. The Assessing Officer received information about potential income escaping assessment, leading to the initiation of reassessment proceedings. Issue 1: Jurisdiction for Reassessment The reassessment was framed by the Deputy Commissioner… Read More »

 Supreme Court Issues Notice on Taxability of Interest on Land Acquisition Compensation Issue: Whether interest received on compensation or enhanced compensation for land acquired under the Land Acquisition Act, 1894, should be considered as ‘income from other sources’ under Section 56(2)(viii) of the Income-tax Act, 1961, and be subject to income tax. Facts: The High… Read More »

Stamp Duty Value at Allotment Date Relevant for Section 56(2)(vii)(b) Addition Issue: Whether the stamp duty value on the date of allotment, rather than the date of registration, should be considered for determining the income under Section 56(2)(vii)(b) of the Income-tax Act, 1961, when a property is purchased. Facts: The assessee purchased a flat. The… Read More »

Disallowance under Section 40A(3) Remanded for Fresh Examination Considering Bank Holiday, Payment by Agent Issue: Whether the disallowance of cash purchases exceeding Rs. 20,000 under Section 40A(3) of the Income-tax Act, 1961, is justified when the assessee claims that the payments fall within the exceptions provided under Rule 6DD of the Income-tax Rules, 1962. Facts:… Read More »

 Interest Income from Employee Loans Considered Business Income not income from other sources for Power Generation Company Issue: Whether interest income earned by a power generation company from loans and advances provided to its employees should be classified as ‘business income’ under Section 28(i) of the Income-tax Act, 1961, or ‘income from other sources’ under… Read More »

 Retainer Fee Paid to Foreign Agent in USA Allowed as Business Expenditure; No Disallowance for if No Exempt Income during the year Key Issues and Decisions: I. Allowability of Retainer Fee: Issue: Whether the retainership fee paid by the assessee-company to foreign agents for marketing and business development in the USA is allowable as business… Read More »

Delay in Filing Form 10B by Educational Institution Condoned Due to COVID-19 Hardships Issue: Whether the delay in filing Form 10B by an educational institution for registration under Section 12A of the Income-tax Act, 1961, can be condoned due to difficulties faced during the COVID-19 pandemic. Facts: The assessee, an educational institution, filed Form 10B… Read More »