IMPORTANT INCOME CASE LAWS 08.12.2025 Section Case Law Title Brief Summary Citation Relevant Act 10(38) Nilesh Bipinchandra Mehta HUF v. Principal Commissioner of Income-tax Revisional jurisdiction under Section 263 was quashed because the Assessing Officer’s acceptance of Long-Term Capital Gains (LTCG) exemption on share sales, with no discrepancy in documents, was not considered erroneous or… Read More »
Rejection of 80G application treating it as 12AB registration violation of natural justice; Matter remanded Issue Whether the Commissioner (Exemptions) can reject an application for approval under Section 80G by erroneously treating it as an application for registration under Section 12AB, and whether a subsequent rectification order cures the defect of not confronting the assessee… Read More »
High Court “clarification” is not a “Direction”; Fresh assessment barred by limitation Issue Whether a High Court’s observation clarifying that its order “would not preclude the Revenue from initiating fresh proceedings” constitutes a “finding or direction” under Section 153(6), thereby lifting the statutory time bar for completing an assessment. Facts Merger & Nullity: The original… Read More »
Interest u/s 244A allowed on Advance Tax refund even if claim missed in Return; withdrawal u/s 154 invalid Issue Whether the Assessing Officer (AO) is justified in withdrawing interest granted under Section 244A on a refund of advance tax, solely on the ground that the delay in claiming the refund was attributable to the assessee… Read More »
Reopening notice sent to defunct email ID held invalid; Assessment quashed Issue Whether a reopening notice under Section 148 is validly served under Section 282 if it is sent to an old, non-operative email ID of the assessee, despite the Department being aware of and having used the assessee’s new email ID for other correspondence.… Read More »
Revenue’s appeal against 12.5% profit estimation on bogus purchases dismissed; Estimation is a question of fact Issue Whether a further reduction of disallowance on bogus purchases from 25% (set by CIT(A)) to 12.5% (set by ITAT) constitutes a “substantial question of law” under Section 260A for the High Court to intervene, especially when the Revenue… Read More »
IMPORTANT GST CASE LAWS 08.12.2025 Section/Form/Rule Case Law Title / Subject Brief Summary Citation / Authority Relevant Act GSTR-3B Table 3.2 Auto-population and non-editability Auto-populated values in Table 3.2 of GSTR-3B (inter-State supplies to unregistered persons, composition taxpayers, and UIN holders) will be non-editable from the November 2025 tax period. Corrections must be made through… Read More »
Reopening notice quashed as Assessee’s name not found in seized material; AO relied on surmises Issue Whether the Assessing Officer (AO) can validly assume jurisdiction to reopen an assessment under Section 147 based on information from a search on a third party (‘D’), when the assessee’s name did not appear in the seized material and… Read More »
Supreme Court upholds 100% addition of bogus purchases where source of expenditure remained unexplained Issue Whether the Assessing Officer (AO) was justified in adding the entire amount of alleged bogus purchases to the income of the assessee under Section 69C, rather than restricting the addition to a profit percentage, when the assessee failed to explain… Read More »
Revenue’s appeal against 12.5% profit estimation dismissed; Quantum of addition is a question of fact Issue Whether a further reduction of disallowance on bogus purchases from 25% (set by CIT(A)) to 12.5% (set by ITAT) constitutes a “substantial question of law” under Section 260A for the High Court to intervene, especially when the Revenue had… Read More »