ITAT: Cash Deposits from Sales Already Offered to Tax Cannot Be Added Again as Unexplained Income u/s 68/69 Brief Facts of the Case The assessee, Sanjay Malhotra, filed an income tax return for the Assessment Year 2017-18, declaring an income of ₹15,06,8401. During the demonetization period, the assessee deposited ₹1,29,47,000 in cash into HDFC Bank.… Read More »
ITAT: Cash Deposits from Sales Already Offered to Tax Cannot Be Added Again as Unexplained Income u/s 68/69 Brief Facts of the Case The assessee, Shivansh Dairy Products Private Limited, filed an income tax return for the Assessment Year 2017-18. The case was selected for complete scrutiny because of an “abnormal increase in cash deposits… Read More »
IMPORTANT INCOME TAX CASE LAWS 13.10.2025 Section Case Law Title Brief Summary Citation Relevant Act 69, 69A, 69B Hiralal Vijawat vs. ACIT/DCIT Entire income surrendered during a survey by a cloth and saree trader, asserting it arose from business (excess cash/stock, debtor cash, shop investment), was to be taxed as business income at normal… Read More »
Section 50’s deeming fiction doesn’t affect the tax rate under Section 112. Issue Does the deeming provision of Section 50 of the Income-tax Act, 1961, which treats the gain on the sale of a depreciable asset as a Short-Term Capital Gain (STCG), also mandate that it must be taxed at the higher rates applicable to… Read More »
A delay in filing an appeal can be condoned if it was caused by the professional negligence of the taxpayer’s counsel. Issue Should a delay in filing an appeal be condoned if the reason for the delay is the professional negligence or oversight of the taxpayer’s authorized representative? Facts An assessee’s appeal was dismissed by… Read More »
An assessment on a dissolved firm is valid if the AO was not informed of the dissolution. Issue Is an assessment order passed in the name of a partnership firm legally valid if the assessee claims the firm had already dissolved, but they failed to formally intimate the tax department about this dissolution? Facts The… Read More »
A taxpayer’s hearing request extends the time limit for a Section 148A(d) order. Issue Is an order passed under Section 148A(d) of the Income-tax Act, 1961, barred by limitation if it is passed more than one month after the assessee’s reply was received, specifically when the assessee themselves had requested a personal hearing? Facts The… Read More »
A delay in Form 10B verification was condoned due to an accountant’s error. Issue Should a significant delay in the e-verification of an audit report in Form 10B be condoned if the audit itself was completed on time and the delay was due to an inadvertent error by the taxpayer’s accountant? Facts An assessee, a… Read More »
An AO cannot change the share valuation method chosen by an assessee. Issue Does an Assessing Officer (AO) have the authority to discard the valuation method chosen by a taxpayer for its shares—as permitted under the law—and substitute it with another method, simply because the AO disagrees with the projections used in the original valuation?… Read More »
The 10% tolerance band in Section 43CA applies retrospectively. Issue Is the amendment to Section 43CA of the Income-tax Act, 1961, which increased the permissible tolerance limit (safe harbour) between the stamp duty value and the sale consideration from 5% to 10%, applicable retrospectively to past assessment years? Facts An assessee sold three immovable properties… Read More »