Reassessment is invalid if an NRI’s income is from an exempt NRE account. Issue Can reassessment proceedings be validly initiated against a Non-Resident Indian (NRI) for high-value transactions in their bank account, when the taxpayer provides a clear explanation that the account is a Non-Resident (External) – NRE – account and the income earned in… Read More »
A court may restore a GST registration if the taxpayer agrees to become compliant. Issue Should a taxpayer whose GST registration was cancelled for non-filing of returns, and whose subsequent appeal was also rejected for being filed late, be given a final opportunity by a High Court to have their registration restored? Facts A petitioner-company,… Read More »
A transaction is benami if the purchase price is paid by a third party. Issue Does a property transaction qualify as a “benami transaction” when a third person (‘M’) pays the entire purchase price for a property that is then registered in the name of another person (‘R’), especially when the claim that the payment… Read More »
A court can grant a taxpayer a fresh, conditional opportunity to apply for the restoration of their cancelled GST registration, even if the statutory deadline has expired. Issue Can a taxpayer, whose GST registration has been cancelled for non-filing of returns and who has also missed the statutory deadline to apply for revocation, be given… Read More »
An advance ruling is binding only on the applicant, not on other taxpayers. Issue Can a tax authority issue a show-cause notice and demand tax from a taxpayer by applying and enforcing an advance ruling that was obtained by a completely different and unrelated taxpayer? Facts A person named Gulab Singh Chouhan had applied for… Read More »
A 153C satisfaction note must show how seized material impacts the assessee’s income. Issue Is a proceeding initiated under Section 153C of the Income-tax Act, 1961, legally valid if the mandatory “satisfaction note” recorded by the assessee’s Jurisdictional Assessing Officer (JAO) fails to specify how the seized material has a “bearing on the determination of… Read More »
A weighted deduction for R&D requires prior DSIR approval and agreement; it cannot be claimed retrospectively for past years before these conditions are met. Issue Is a company entitled to claim a weighted deduction for its in-house R&D expenditure under Section 35(2AB) of the Income-tax Act, 1961, for a particular assessment year if the mandatory… Read More »
INCOME TAX REFUND नहीं आएगा ! Details में जाने कारण Ay 2025-26
A delay in filing the audit report in Form 10B is a curable procedural defect and should not be a reason to deny a charitable trust’s tax exemption. Issue Is the timely filing of the audit report in Form 10B a mandatory, substantive condition that is fatal to a charitable trust’s claim for tax exemption… Read More »
A demand order is invalid if a show-cause notice in Form DRC-01 was not issued first. Issue Is a summary demand order issued in Form DRC-07 legally valid if the tax department has failed to issue the mandatory, formal show-cause notice (SCN) in Form DRC-01 before passing the final order? Facts The GST department initiated… Read More »