Daily Archives: March 13, 2025

Income Tax Department has to re-compute income Due to Falsified Accounts based on investigations by CBI and SFIO on filing Application u/s 119 CBDT Order Quashed; Reassessment Directed Due to Falsified Accounts Issue: Whether the CBDT’s rejection of an assessee company’s application for reassessment of income, which was based on falsified corporate accounts, should be quashed,… Read More »

Application for registration under section 80G(5)(iii) can be considered even if filed after six months. 80G Final Approval Rejection Quashed; Hyper-Technical Rejection Without Merit Invalid Issue: Whether the Commissioner (Exemptions) is justified in rejecting an assessee’s application for final approval under Section 80G(5)(iii) on the ground that activities commenced before obtaining provisional approval and the… Read More »

Interest disallowance on interest-free advances is not justified if there is commercial expediency. Assessee Relief on Interest Disallowance, Provision for Expenses, and Other Issues I. Interest on Borrowed Capital (Section 36(1)(iii)) Issue 1: Disallowance of interest on advances to three companies. Decision: Commissioner (Appeals) justified in deleting disallowance as there was commercial expediency and the… Read More »

Reopening Notice for F&O Loss Reversal Quashed; Independent Opinion Required for Reassessment Issue I: Whether a reopening notice under Section 148 of the Income-tax Act, 1961, is valid when it is based on information from an insight portal about non-genuine transactions in Futures & Options (F&O) trading, but the assessee had disclosed particulars of the… Read More »

Rejection of registration application is justified if the assessee fails to provide necessary details. 12AB and 80G Registration Denial Upheld; Non-Compliance Despite Multiple Opportunities Issue I: Whether the Commissioner (Exemptions) is justified in rejecting an assessee-society’s application for registration under Section 12A(1)(ac)(iii) when the assessee failed to furnish required details/documents despite multiple opportunities. Issue II:… Read More »

12A and 80G Renewal Rejection Quashed; Lack of Examination Violates Natural Justice Issue: Whether the Commissioner (Exemptions) is justified in rejecting an assessee-trust’s application for renewal of registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5)(iii) on the ground of non-compliance of notices, when the assessee had submitted all required information and documents within the… Read More »

Depreciation can be claimed on assets acquired through a gift. I. Depreciation on Passive Infrastructure Assets (PIAs) Acquired Through Gift (Section 32, 43(1)) Issue: Whether the assessee can claim depreciation on PIAs acquired through a court-approved merger scheme, where the initial transfer to Tower Companies (TowerCos) was considered a “gift.” Decision: The court held that… Read More »

Reopening Notice Quashed; No Failure to Disclose Material Facts; Change in Residential Status in Subsequent Year Not Grounds for Reopening Issue: Whether a reopening notice under Section 148 of the Income-tax Act, 1961, is valid when it is based solely on a change in the assessee’s residential status in a subsequent assessment year, and there… Read More »

Income Tax Guide for AY 2025-26 Computation of Tax for Individual for AY 2025-26 Deduction of tax in case of Specified Senior Citizen AY 2025-26 Advance Tax provsions for AY 2025-26 Exemptions from Capital Gains AY 2025-26 Exemption to Capital Gains on Transfer of Agricultural Land AY 2025-26 SET OFF AND CARRY FORWARD OF LOSS… Read More »

Computation of Tax for Individual for AY 2025-26 The income taxable in the hands of an individual and tax liability thereon shall be computed according to his residential status. The income taxable under the Income-tax Act is computed under the five heads of income, and tax thereon is computed as per the tax slab rates… Read More »