IMPORTANT INCOME TAX CASE LAWS 03.12.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 2(8) Deputy Commissioner of Income-tax (BPU) v. Anku Nivesh Niryat (P.) Ltd. Order declining provisional attachment of property as non-benami, based on a now-recalled Supreme Court judgment (Union of India v. Ganpati Dealcom), was held unsustainable and remanded for… Read More »
SLP dismissed on delay; reopening invalid as additional depreciation claim examined during original scrutiny Issue Validity of Reopening: Whether the Assessing Officer can validly reopen an assessment beyond four years regarding a claim of additional depreciation, when all material facts and justifications were furnished and examined during the original scrutiny assessment. Condonation of Delay: Whether… Read More »
Penalty under Section 271D invalid if not initiated within the Block Assessment Order Issue Whether penalty proceedings under Section 271D (for violation of Section 269SS regarding cash loans/deposits) are valid if the Assessing Officer (AO) fails to record satisfaction or initiate such penalty within the block assessment order passed under Section 158BC. Facts Search &… Read More »
Penalty deleted as inadvertent non-disallowance of statutory liabilities in return constitutes bona fide mistake Issue Whether the imposition of penalty under Section 271(1)(c) for concealment of income is justified when the assessee inadvertently failed to disallow statutory liabilities (gratuity, leave encashment) in the return of income, despite the details being available in the tax audit… Read More »
No penalty for foreign asset disclosure technicality if cured in Section 153A return before notice Issue Whether a penalty for concealment of income under Section 271(1)(c) is sustainable when foreign assets were disclosed in the original returns and books, but allegedly not in the “prescribed format,” and this technical defect was cured in a return… Read More »
TDS credit allowed based on salary slips despite Form 26AS mismatch; Employer’s default cannot penalize Employee Issue Whether the Revenue can deny TDS credit to an employee and levy interest under sections 234B/234C when the employer deducted the tax but failed to deposit it with the Government (resulting in a Form 26AS mismatch), or… Read More »
TDS credit allowable in year of property transfer via Form 71 rectification despite subsequent year deduction Issue Whether an assessee is entitled to claim TDS credit in the Assessment Year (AY 2022-23) where the capital gains income was assessable/reported, even though the TDS was deducted and reported by the deductor (purchaser) in a subsequent year… Read More »
Section 147 reassessment valid when Section 153C inapplicable due to lack of incriminating material Issue Choice of Provision: Whether assessment proceedings must necessarily be initiated under Section 153C (Search Assessment) instead of Section 147 (Reassessment) when a search is conducted on a third party, even if no incriminating material belonging to the assessee was… Read More »
Section 148 notice issued by Jurisdictional AO violates Section 151A faceless scheme and is void Issue Whether a notice under Section 148 for reopening an assessment is valid if it is issued by the Jurisdictional Assessing Officer (JAO) instead of the Faceless Assessing Officer (FAO), following the notification of the Faceless Assessment Scheme under… Read More »
NRI’s foreign income used for Indian property investment cannot be taxed under Section 69 Issue Whether an investment of ₹2 Crores made by a Non-Resident Indian (NRI) in a residential property in India can be taxed as “unexplained investment” under Section 69, when the funds were remitted from foreign earnings into an NRE account and… Read More »