Daily Archives: December 1, 2025

Capital Gains Account closure: AO can retain estimated tax liability but must release excess balance Issue Whether the Income Tax Officer (AO) can deny permission to close a Capital Gains Account Scheme (CGAS) account and determine tax liability without formal assessment proceedings, particularly when the assessee claims to have utilized borrowed funds for construction under… Read More »

Educational trust allowed exemption on hostel income and related party payments found reasonable and genuine Issue Whether the Assessing Officer was justified in making various disallowances (Advertisement, Royalty, Hostel Income, etc.) against an educational trust under Section 13(1)(c) regarding related party transactions and treating hostel activities as commercial, despite the trust holding valid registration under… Read More »

Appeals dismissed for non-prosecution and unexplained 156-day delay in filing electronically Issue Whether a delay of 156 days in filing appeals should be condoned when the explanation of “technical glitches” is vague and the assessee fails to appear despite repeated notices. Facts Appeals Filed: The assessee filed four appeals against the orders of the CIT(A)… Read More »

Mere disallowance of claim does not amount to concealment; Penalty u/s 271(1)(c) deleted Issue Whether the levy of penalty under Section 271(1)(c) of the Income Tax Act is justified when additions are made solely due to a difference of opinion regarding the treatment of receipts (surplus and santage charges), without any finding of concealment or… Read More »

ITAT remands Maruti Suzuki tax credit dispute to AO for verification of unpaid refund claims Issue Whether the CIT(A) erred in directing a refund of Rs. 3.20 Crores to the assessee by accepting their calculation of taxes paid without affording the Assessing Officer (AO) an adequate opportunity to verify the records and the order giving… Read More »

Assessment set aside to verify Corpus Fund status of Government Grant Issue Whether the grant-in-aid received by the assessee from the Government of Haryana constitutes a “Corpus Fund” exempt under Section 11(1)(d) of the Income Tax Act, and if the lower authorities erred in taxing it as surplus income without verifying its specific nature. Facts… Read More »

ITAT dismisses appeal as withdrawn following assessee’s request to stop proceedings Issue Whether the Tribunal should grant permission to the assessee to withdraw the appeal filed for Assessment Year 2017-18 based on the counsel’s application. Facts Appeal Details: The assessee filed an appeal against the order of the Ld. CIT(A), Nagpur, dated 05/02/2024, for the… Read More »

Uncontroverted affidavits and land ownership prove agricultural source of cash deposits; Section 69 addition deleted Issue Whether cash deposits in a joint bank account can be treated as unexplained investments under Section 69 of the Income-tax Act, 1961, when the assessee claims they represent agricultural income belonging to the joint holder (daughter), supported by affidavits… Read More »

12AB rejection remanded and delay condoned due to counsel’s difficulty and lack of effective notice Issue Condonation of Delay: Whether a delay of 111 days in filing an appeal can be condoned when caused by the previous counsel’s personal difficulty (mother’s chemotherapy) and the assessee’s lack of knowledge of the order. Natural Justice: Whether an… Read More »