Daily Archives: May 23, 2025

Full TDS Credit Allowed on Inherited Property Sale Despite Capital Gain Proportionality, Upholding Substance Over Technicality. Issue: Whether an assessee, who inherited a property and received the entire sale consideration in her bank account after Tax Deducted at Source (TDS), is entitled to claim full TDS credit, or whether the Assessing Officer (AO) can restrict… Read More »

Reopening Notices Against Struck-Off Company Quashed; Matter Remanded to Await NCLT Restoration. Issue: Whether reopening notices, assessment orders, and demand notices issued under Sections 148 and 147 of the Income-tax Act, 1961, against a company whose name has been struck off from the Register of Companies, are valid, especially when the Income-tax Department itself has… Read More »

Estimated Income at Average Rate of Last three FY Upheld Following Rejection of Books of Account. Issue: Whether the Appellate Authority was justified in accepting the assessee’s alternative offer of computing net profit at 0.77 percent of total turnover, based on the average net profit of the preceding three financial years, after the Assessing Officer… Read More »

Transfer Order Under Section 127 Upheld: Assessee’s Non-Reply and Undenied Suspicious Transactions Justify Centralization. Issue: Whether a case transfer order under Section 127 of the Income-tax Act, 1961, issued by way of a “corrigendum” to an earlier order, can be challenged on the grounds that it “improved upon facts” and “reasons” not available in the… Read More »

Assessment Order by ACIT Quashed for Lack of Inherent Jurisdiction as Per CBDT Instructions on Nil Income. Issue: Whether an assessment order framed by an Assistant Commissioner of Income Tax (ACIT) is valid when the assessee has declared nil income, and as per CBDT Instruction No. 1/2011, the jurisdiction for such cases (with nil or… Read More »