IMPORTANT INCOME TAX CASE LAWS 03.03.2025 Section Case Law Title Brief Summary Citation 2(9) Initiating officer v. Ramesh Chand Sharma Provisional attachment order cannot be confirmed if the funds were not transferred by the alleged beneficial owner. Click Here 2(47) M. S. Ananthamurthy v. J. Manjula A sale deed executed by a general power of… Read More »
Penalty cannot be imposed if additions are made based on estimated rates. Penalty Under Section 271(1)(c) Quashed; Estimation of Income Not Concealment Issue: Whether a penalty under Section 271(1)(c) of the Income-tax Act, 1961, can be imposed when the Assessing Officer (AO) rejects the assessee’s books of account and estimates income by applying a higher… Read More »
Appeals Below Monetary Limits Withdrawn; Circular 5/2024 Applied to Pending Appeals Issue: Whether pending appeals filed by the revenue, where the tax effect is less than Rs. 2 crores, should be withdrawn in view of CBDT Circular No. 5/2024 dated March 15, 2024, and Circular No. 9/2024 dated September 17, 2024, despite the revenue claiming… Read More »
Vivad Se Vishwas Scheme Application Re-examined; Interest Waiver Consideration Directed Issue: Whether the assessee’s application under the Vivad Se Vishwas (VSV) Scheme for waiver of interest under Sections 234A, 234B, and 234C should be re-examined when the application was rejected without assigning any reason, and the assessee had paid advance tax in a prior assessment… Read More »
Section 194IC TDS Not Applicable to Alternate Accommodation Charges; Not Part of Share in Land/Building Issue: Whether alternate accommodation charges/rent paid to occupants during the construction period under a redevelopment agreement constitute “consideration paid as part of share in land or building” under Section 194IC of the Income-tax Act, 1961, thereby requiring the assessee to… Read More »
Section 143(2) Notice Issued Beyond Limitation Period Invalid; Defective Return Date Remains Original Filing Date Issue: Whether the limitation period for issuing a notice under Section 143(2) of the Income-tax Act, 1961, should be calculated from the date of filing the original return under Section 139(1) or from the date the defects in the return… Read More »
Assessment orders passed by an officer without proper transfer orders are invalid. Assessment Order Quashed; Transfer Order Lacking; Section 124(3) Not Applicable Issue 1: Whether an assessment order passed by an Income Tax Officer (ITO) is valid when the case was transferred from one ITO to another without a proper order of transfer passed by… Read More »
Interest and penalty paid on account of non-payment of additional license fee are revenue expenditure. No disallowance under section 14A is required if there is no other source of exempt income. I. Allowability of Interest and Penalty as Business Expenditure (Section 37(1)) Issue: Whether interest and penalty paid by the assessee due to delayed payment… Read More »
Section 10(23C)(vi) Approval Remanded; Potential Activities Not Grounds for Rejection Issue: Whether the Commissioner (Exemptions) is justified in rejecting an application for fresh approval under Section 10(23C)(vi) of the Income-tax Act, 1961, based on the mere mention of certain authorized activities in the assessee-company’s objects, without evidence of those activities being actually undertaken. Facts: The… Read More »
Sale Deed Executed Under General Power of Attorney After Principal’s Death Invalid Issue: Whether a sale deed executed by a General Power of Attorney (POA) holder after the death of the original owner (principal) is valid, particularly when the POA and agreement to sell were not registered, and the POA was general in nature. Facts:… Read More »