Assessment u/s 143(3) Quashed as Notice u/s 153C Was Mandatory for the Block Period. Issue Whether an assessment for a specific year (AY 2021-22) can be framed under the general scrutiny provisions of Section 143(3) when, by virtue of the date of the “satisfaction note” (30-09-2022), that year falls within the six-year block requiring mandatory… Read More »
Block Assessment Validly Includes Post-Search Inquiry Material Relatable to Search Evidence. Issue Whether an assessment of undisclosed income under Section 158BC for the block period can be based solely on evidence found during the search, or if the Assessing Officer (AO) is also entitled to rely on information and material gathered during “post-search enquiries” that… Read More »
Addition u/s 68 Deleted: Documents Prove Genuineness, Directors’ Non-Appearance Not Fatal Issue Whether the Assessing Officer (AO) is justified in making an addition under Section 68 (Unexplained Cash Credits) for share capital and premium received, solely on the ground that the directors failed to appear in person in response to summons, even when the assessee… Read More »
Protective Addition u/s 56(2)(viib) Deleted as Substantive Addition Quashed on Merits. Issue Can a “protective addition” made under Section 56(2)(viib) in the year of receipt of share application money be sustained if the “substantive addition” made in the subsequent year (year of allotment) has already been deleted by the Tribunal on its merits? Facts Transaction:… Read More »
Exemption Under Section 56(2)(viib) Denied as Investor Was Not SEBI-Registered AIF; Matter Remanded to Verify DCF Valuation Issue Whether an assessee-company is exempt from the “Angel Tax” provisions under the proviso to Section 56(2)(viib) when the investor (Wipro Enterprises Ltd.) is not a SEBI-registered Alternative Investment Fund (AIF) or Venture Capital Fund (VCF). Whether the… Read More »
Reversal of Disallowed Provision Not Taxable u/s 41(1); VSV Settlement Confirms Finality Issue Whether the write-back (reversal) of a provision for liquidated damages in the current assessment year is taxable as deemed income under Section 41(1), to the extent that the original provision was disallowed in earlier years and that disallowance has attained finality through… Read More »
Revisional Order Quashed: TDS Funding Mischaracterized as ESOP Cost Reimbursement Issue Whether the Principal Commissioner of Income Tax (PCIT) can invoke revisionary jurisdiction under Section 263 to disallow a deduction for Employee Stock Option Plan (ESOP) costs on the ground that the assessee “recovered” a portion of the cost from its holding company, when factual… Read More »
Cash Deposit Followed by Immediate RTGS Transfer During Demonetization Held as Benami Transaction. Issue Whether a transaction involving the deposit of cash (demonetized notes) into an individual’s bank account, followed by an immediate RTGS transfer to a company, qualifies as a “Benami Transaction” under Section 2(9)(A) of the PBPT Act, particularly when the depositor admits… Read More »
IMPORTANT GST CASE LAWS 18.11.2025 Section / Rule Case Law Title Brief Summary Citation Relevant Act Section 9 Mala Sahni Seth v. Delhi Development Authority GST was prima facie not leviable on DDA’s retrospective demand for conversion charges (for freehold conversion of leasehold property), as these charges were considered part of the sale consideration for… Read More »
Anti-Profiteering Proceedings Dropped Against Untraceable Serum Supplier due to Lack of Evidence Issue Whether anti-profiteering proceedings under Section 171 of the CGST Act can be sustained against a supplier when the entity is untraceable, relevant business records are unavailable, and the investigation authority (DGAP) is unable to gather the necessary evidence to compute the profiteered… Read More »