Ministry of Finance India’s Sovereign Rating Upgraded to BBB+ (Stable) by Rating and Investment Information, Inc. (R&I), Japan This is third such upgrade of India by a sovereign credit rating agency this year, following S&P’s upgrade to ‘BBB’ (from BBB-) in August 2025 and Morningstar DBRS’ upgrade to ‘BBB’ (from BBB (low)) in May 2025Three… Read More »
IMPORTANT INCOME TAX CASE LAWS 18.09.2025 Section Case Law Title Brief Summary Citation Relevant Act 12AB Hatkeshwar Mahadev Trust v. Commissioner of Income-tax (Exemption) Denial of registration to charitable trust unjustified; objects catering to a religious caste are permissible if income isn’t applied for that specific benefit and no violation inquiry was made. Click Here… Read More »
Section 153C Proceedings Quashed Due to Defective Satisfaction Note Lacking Reference to Incriminating Material A valid satisfaction note is the jurisdictional bedrock for a Section 153C assessment; without it, the entire proceeding collapses. Issue The central issue is whether proceedings under section $153C$ of the Income-tax Act, 1961, can be legally sustained if the satisfaction… Read More »
Reopening of Assessment Quashed as the Underlying Transaction Pertained to a Different Assessment Year Issue The central issue is whether a reopening of assessment under section $147$ of the Income-tax Act, 1961, is legally valid if the transaction that forms the basis for the reopening was completed in a financial year different from the one… Read More »
Search Assessment Quashed Due to Mechanical Approval Under Section 153D Without Examining Records Issue The central issue is whether assessment orders passed under section $153A$ of the Income-tax Act, 1961, are legally valid if the mandatory prior approval under section $153D$ is granted by the higher authority in a mechanical manner, without having access to… Read More »
Addition for Bogus Purchases Must Be Restricted to the Profit Element When Corresponding Sales Are Accepted Issue Can the entire amount of purchases be disallowed as “unexplained expenditure” under section $69C$ of the Income-tax Act, 1961, based on third-party statements, especially when the corresponding sales have been accepted as genuine by the Assessing Officer and… Read More »
Assessment Order Set Aside for Violating Principles of Natural Justice by Denying a Hearing Issue The central legal question is whether an assessment order passed on a “best judgment basis” under section $153C$ of the Income-tax Act, 1961, can be sustained if the assessee was not provided with a reasonable opportunity of being heard, even… Read More »
Reassessment Quashed as AO Ignored Evidence Proving the Genuineness of a Loan Transaction Issue Can a reopening of assessment under section $148$ of the Income-tax Act, 1961, be sustained if the Assessing Officer (AO) completely disregards documentary evidence submitted by the assessee to prove the genuineness of a transaction and instead jumps to a conclusion… Read More »
Reassessment Quashed as Sanction for Reopening Notice Was Obtained from an Incorrect Authority Issue The central issue is whether a reopening notice issued under section $148$ of the Income-tax Act, 1961, is legally valid if the sanction for its issuance, as required by section $151$, is obtained from the Principal Commissioner instead of the statutorily… Read More »
Release of Bare Act: “INCOME TAX ACT, 2025 Including Tabular Mapping of Sections vis-a-vis Income-tax Act, 1961. Announcement Publication of the Income-tax Act, 2025 by DTC of ICAI Members may be kindly aware that the Income-tax Bill, 2025 has been passed by the Parliament and has received the assent of the Hon’ble President of India… Read More »