Daily Archives: September 29, 2025

A penalty order is invalid if it ignores an Advance Pricing Agreement (APA) and denies a virtual hearing. Issue Is a penalty order passed under Section 270A of the Income-tax Act, 1961, legally valid if it is issued without considering significant subsequent events like the assessee entering into an APA and filing a modified return,… Read More »

An addition for unaccounted sales based on an estimated production yield, without any supporting evidence, is not legally sustainable. Issue Can the books of account of a manufacturing business be rejected and a significant addition for unaccounted sales be made based solely on a hypothetical or estimated production yield adopted by the Assessing Officer, especially… Read More »

An auditor’s error is a reasonable cause to condone a delay in filing Form 10B. Issue Should a delay in uploading the mandatory audit report in Form 10B be condoned if the delay was caused by an inadvertent error on the part of the auditor’s staff, particularly when the audit itself was completed and the… Read More »

No separate claim can be made for seized gold once it has been taxed. Issue Can a person file a writ petition to claim the release of seized assets, such as gold ornaments, if those very same assets have already been considered and substantively assessed to tax in the hands of another person (in this… Read More »

An assessment order is invalid if passed under a different section than intended. Issue Is an assessment order legally valid if the Assessing Officer, after recording a formal satisfaction to proceed under a specific section of the Income-tax Act, 1961 (in this case, Section 153C), ultimately ignores that and passes the final order under a… Read More »

A foreign travel expense addition is unjustified if the source of the payment is proven. Issue Can an addition for unexplained foreign travel expenditure under Section 69C of the Income-tax Act, 1961, be sustained if the assessee provides a plausible explanation and credible documentary evidence to prove the source of the funds for the travel?… Read More »