Daily Archives: October 15, 2025

Yes, tax assessment proceedings can continue to determine a company’s liability even after an insolvency moratorium is in place; however, the actual recovery of tax dues is prohibited during this period. Issue Does the imposition of a moratorium under the Insolvency and Bankruptcy Code (IBC), 2016, bar the Income-tax Department from continuing assessment proceedings to… Read More »

Reassessment proceedings were quashed because the mandatory approval for reopening the case was given by the wrong authority. Issue Is a reassessment proceeding legally valid if the sanction to issue the notice under Section 147 is granted by an authority other than the one specified as the competent authority under Section 151 of the Income-tax… Read More »

The monetary threshold for reopening an assessment is based on the net income that escaped tax, not the gross transaction value. Issue For the purpose of determining the time limit for issuing a reassessment notice under Section 149(1)(b), should the monetary threshold of ₹50 lakhs be applied to the gross receipts of a transaction or… Read More »

A reassessment notice is invalid if issued after the “surviving time” limit established by the Supreme Court, rendering all subsequent proceedings void. Issue Is a fresh reassessment notice issued under Section 148 of the new tax regime legally valid if it was issued after the expiry of the “surviving time” limit, as calculated under the… Read More »

TPO Exceeded Jurisdiction by Questioning 80-IA Profit Allocation Instead of Transaction Price. Issue Can a Transfer Pricing Officer (TPO) disregard a valid benchmarking method (CUP) for a specified domestic transaction and make a transfer pricing adjustment by questioning the assessee’s internal profit allocation between different business units (an issue of corporate tax), rather than the… Read More »

CBDT Must Extend ITR Due Date When Audit Report Deadline Is Extended. Issue Whether the Central Board of Direct Taxes (CBDT) is legally obligated to extend the due date for filing the income tax return under Section 139(1) when it extends the due date for furnishing the tax audit report under Section 44AB, in order… Read More »

Addition for Unexplained Investment Set Aside as Income Was Declared Under IDS Scheme. Issue Can the revenue authorities make an addition for an unexplained investment under Section 69 against an assessee when the said income has already been declared under the Income Declaration Scheme (IDS), 2016, for which a valid and uncancelled certificate (Form IV)… Read More »

Unilateral Write-Off by Debtor Isn’t Cessation of Liability Under Sec 41(1) Without Creditor’s Confirmation. Issue Can an addition be made under Section 41(1) for cessation of a trading liability solely on the basis that the assessee has written it off in their books of accounts and the creditor did not respond to a notice under… Read More »

Disallowance for Late PF/ESI Deposit Remanded for Factual Verification and Segregation. Issue Whether a disallowance for delayed deposit of Provident Fund (PF) and Employee State Insurance (ESI) contributions, made mechanically by the Central Processing Center (CPC) based on figures in Form 3CD, can be sustained without verifying and segregating the amounts pertaining to the employee’s… Read More »

Delay in filing Form 10 condoned due to genuine hardship and substantive compliance. Issue Whether the delay in filing Form 10 by a charitable trust should be condoned when the trust has genuinely applied the accumulated funds for charitable purposes and the delay was attributable to reasonable causes, thereby preventing the denial of tax exemption… Read More »