Reassessment Orders Quashed as Notices Were Issued to a Deceased Person. Issue Whether reassessment proceedings (including notices under Section 148 and final assessment orders) are legally valid if they are initiated and completed in the name and PAN of a taxpayer who is already deceased, especially when the tax department was formally informed of the… Read More »
SC Dismisses Revenue’s SLP; Reassessment Quashed Due to Invalid Sanction from Wrong Authority. Issue Whether a reassessment proceeding for an assessment year beyond three years is legally valid if the sanction for it was obtained from the Commissioner (under Section 151(i)) instead of the “specified authority” (Principal Chief Commissioner), as mandatorily required by Section 151(ii)… Read More »
Reassessment Notice for AY 2015-16 Issued in 2022 is Time-Barred, Following SC’s Rajeev Bansal Decision. Issue Whether a reassessment notice for Assessment Year 2015-16, issued on April 5, 2022 (i.e., after the new reassessment regime began on April 1, 2021), is legally valid, or if it is barred by limitation as per the concession recorded… Read More »
Reassessment Quashed as JAO’s Notice Was Outside Section 151A Scope, Following Precedent. Issue Whether an entire reassessment proceeding, from the initial notice to the final recovery, is void ab initio (from the beginning) if the Show Cause Notice (SCN) was issued by a Jurisdictional Assessing Officer (JAO) in a manner that falls outside the scope… Read More »
SC Dismisses SLP, Upholds 80G Approval for College Based on Valid 12AA Registration. Issue Can the Commissioner of Income Tax (Exemptions) [CIT(E)] deny Section 80G approval to an educational society by questioning its charitable nature (e.g., for generating a surplus from student fees) when that society already holds a valid, subsisting registration as a charitable… Read More »
100% Bogus Purchase Disallowance Invalid When Sales Are Genuine; Addition Restricted to Profit Element. Issue Can the tax department disallow 100% of alleged “bogus purchases” (accommodation entries) under Section 69C, even when the assessee provides a complete documentary trail (purchase bills, bank payments, shipping bills) and the corresponding export sales are accepted as genuine by… Read More »
Demonetization Addition Remanded as AO Ignored Mandatory CBDT Verification SOP. Issue Whether an addition under Section 69A for Specified Bank Notes (SBNs) deposited by an NBFC during demonetization is valid if the Assessing Officer (AO) failed to follow the mandatory Standard Operating Procedure (SOP) issued by the CBDT for verifying such transactions. Facts The assessee,… Read More »
SC Dismisses SLP; AO’s Inquiry on TDS Bars Section 263 Revision. Issue Whether a Principal Commissioner (PCIT) can invoke revisionary jurisdiction under Section 263 of the Income-tax Act, 1961, on the grounds of “lack of detailed inquiry” when the Assessing Officer (AO) had, in fact, issued a query on the specific issue (TDS compliance) and… Read More »
AO Cannot Invoke 50C on Slump Sale Buyer; Matter Remanded for DVO Valuation Issue Can an Assessing Officer (AO) apply Section 50C principles in the hands of the purchaser of a slump sale to re-allocate the purchase consideration from “goodwill” to “undervalued land and buildings,” thereby disallowing depreciation on goodwill? Facts The assessee-company acquired a… Read More »
Depreciation on Non-Compete Fee Remanded as Foundational Genuineness Was Never Examined. Issue Whether depreciation on a non-compete fee is allowable in the current assessment year (2013-14) when the AO in the foundational year (AY 2008-09) failed to examine its genuineness and valuation as per the specific directions of the Tribunal. Facts The assessee, a television… Read More »