Daily Archives: November 20, 2025

Loose Sheets and Diaries Without Corroboration Do Not Constitute Material Evidence for Section 153C. Issue Whether loose sheets of paper containing typed entries, found during a search, constitute “books of account” or sufficient material evidence to initiate proceedings and make additions under Section 153C, especially when they are not shown to be part of the… Read More »

Carry Forward of Losses Allowed Post-CIRP; Revenue’s Failure to Object During Insolvency Prevents Denial of Tax Benefits. Issue Whether the Income Tax Department can deny the carry forward and set off of losses to a company under Section 79 of the Income-tax Act after a Corporate Insolvency Resolution Process (CIRP), given that the Department failed… Read More »

Section 68 Cannot be Invoked for Opening Balances of Trade Payables or Receivables. Issue Can the Assessing Officer (AO) make additions under Section 68 for “Trade Payables” (to a Director) or “Trade Receivables” (from a debtor) appearing in the balance sheet, if these amounts are merely carried forward from preceding assessment years? Facts Case I… Read More »

Assessing Officer Cannot Arbitrarily Reject DCF Valuation Report Without Specific Findings of Error. Issue Whether the Assessing Officer (AO) can reject the valuation of shares determined by the Discounted Cash Flow (DCF) method and tax the share premium under Section 56(2)(viib), without identifying any specific inaccuracies or technical shortcomings in the valuation report submitted by… Read More »

Deputy Commissioner of Income Tax v. Songwon Specialty Chemicals India (P.) Ltd. Issue Whether the Assessing Officer (AO) can validly reopen an assessment under Section 148/148A solely based on an internal audit objection claiming that “goodwill was a mere book entry,” especially when the same claim (depreciation on goodwill) had been scrutinized and accepted by… Read More »

Sale of Undertaking on Lump-Sum Basis is a Slump Sale; Section 41(2) Inapplicable. Issue Whether the transfer of an entire bottling and marketing business as a “going concern” for a lump-sum consideration constitutes a “slump sale” under Section 2(42C), and whether the Revenue can artificially fragment such a transaction to tax individual assets (like balancing… Read More »

80G Approval Certificate is Sufficient Proof of 12A Registration Issue Can the Assessing Officer (AO) deny tax exemption under Section 11 to a charitable society solely because the assessee failed to produce the physical Section 12A registration certificate, even though the assessee furnished a valid approval certificate under Section 80G? Facts The assessee, a charitable… Read More »

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