Addition for Accommodation Entry Deleted as Sales Were Genuine and Taxes Paid Issue Whether the Assessing Officer (AO) can treat sales proceeds of Rs. 2.68 Crores received from a customer (M/s IINFC Ltd.) as an “accommodation entry” (unexplained income) solely based on third-party search information alleging bogus purchases by the customer’s group, even when the… Read More »
ITAT Quashes Section 263 Revision Orders: AO Took a “Plausible View” After Inquiry Issue Whether the Principal Commissioner of Income Tax (Pr. CIT) can invoke revisionary jurisdiction under Section 263 to set aside a scrutiny assessment order on the ground of “lack of inquiry” or “failure to verify,” when the Assessing Officer (AO) had raised… Read More »
ITAT Quashes Section 263 Revision Orders: AO Took a “Plausible View” After Inquiry Issue Whether the Principal Commissioner of Income Tax (Pr. CIT) can invoke revisionary jurisdiction under Section 263 to set aside a scrutiny assessment order on the ground of “lack of inquiry” or “failure to verify,” when the Assessing Officer (AO) had raised… Read More »
ITAT Dismisses Appeal Against Section 119(2)(b) Rejection Order as Not Maintainable Issue Whether an order passed by the Commissioner of Income Tax (Exemptions) rejecting an application for condonation of delay under Section 119(2)(b) is an appealable order before the Income Tax Appellate Tribunal (ITAT) under Section 253(1) of the Income Tax Act, 1961. Facts Context:… Read More »
ITAT deletes on-money addition for property buyer as seller’s assessment on same issue quashed Issue Whether an addition for unexplained investment (alleged on-money) under Section 69B can be sustained against a property buyer when the corresponding addition for receipt of on-money has been deleted by the Tribunal in the case of the seller. Facts A… Read More »
AO Cannot Tax Non-Existent Income Due to Consultant’s Error: ITAT Deletes Addition Issue Whether the Assessing Officer (AO) is justified in making an addition of income originally declared under Section 44AD due to a tax consultant’s error, even after the assessee voluntarily rectifies the mistake, declares a significantly higher income from other heads, and pays… Read More »
Penalty for Delayed ITC Reversal Unjustified as Credit Reversed and No Undue Benefit Accrued Issue Whether a penalty under GST law is legally sustainable for the delayed reversal of wrongfully transitioned Input Tax Credit (ITC) on obsolete inventory, when the taxpayer voluntarily reversed the credit and maintained a sufficient credit balance throughout, resulting in no… Read More »
SCN Quashed: ASMT-12 Closure Under Section 61 Bars Future Demand on Same Issues Issue Whether GST authorities can initiate demand proceedings under Section 73 regarding specific discrepancies (such as ITC mismatches) after they have already scrutinized those same discrepancies under Section 61, accepted the taxpayer’s explanation, and formally closed the proceedings by issuing Form GST… Read More »
Premature SCN and Time-Barred Audit Quashed; Case Remanded to Pre-SCN Stage. Issue Whether a Show Cause Notice (SCN) issued before the expiry of the deadline granted to file a reply is valid, and whether an audit report issued beyond the statutory three-month limit from the commencement of audit is legally sustainable. Facts Audit Notice: The… Read More »
Ex-Parte GST Orders Set Aside as Notice on Old Portal Denied Effective Hearing to Successor. Issue Whether ex-parte GST assessment orders are legally valid when the Show Cause Notices (SCNs) were uploaded to the GST portal of the erstwhile proprietorship (which remained active but unmonitored by the successor), thereby denying the petitioner an effective opportunity… Read More »