Reassessment against NRI Quashed; Local ITO lacked jurisdiction to issue Section 148 Notice Issue Whether a reassessment order passed against a Non-Resident Indian (NRI) is valid if the initial notice under Section 148 was issued by a regular/local Income Tax Officer (ITO) instead of the ITO (International Taxation), even if the final assessment order was… Read More »
Cash Deposits representing Business Turnover of Small Trader cannot be taxed u/s 69; Sec 44AD benefits apply Issue Whether cash deposits in a savings bank account can be treated as “unexplained investment” under Section 69 when the assessee (a small trader) claims they represent business turnover covered under the presumptive taxation scheme (Section 44AD), even… Read More »
Reassessment after 4 years Quashed; “Borrowed Satisfaction” from Investigation Wing invalidates Notice Issue Whether a reassessment proceeding initiated under Section 147 after the expiry of four years from the end of the relevant assessment year is valid if: The original assessment was completed under scrutiny (Section 143(3)/153B). The Assessing Officer (AO) failed to allege any… Read More »
GST exemption allowed for residential property rented to hostel company (Pre-July 2022); “Use as residence” is activity-specific Issue Whether the GST exemption under Entry 13 of Notification No. 9/2017-Integrated Tax (Rate) is applicable when a residential dwelling is rented to a commercial entity (a company), which subsequently sub-lets it as a long-term hostel to students… Read More »
Best Judgment Assessment Quashed; Mandatory Section 143(2) Notice was never issued Issue Whether an assessment completed under Section 144 (Best Judgment Assessment) is valid if the Assessing Officer (AO) failed to issue the mandatory notice under Section 143(2) to the assessee. Facts Assessment Year: 2017-18. The Action: The Assessing Officer completed the assessment ex-parte under… Read More »
Best Judgment Assessment Quashed; Mandatory Section 143(2) Notice was never issued Issue Whether an assessment completed under Section 144 (Best Judgment Assessment) is valid if the Assessing Officer (AO) failed to issue the mandatory notice under Section 143(2) to the assessee. Facts Assessment Year: 2017-18. The Action: The Assessing Officer completed the assessment ex-parte under… Read More »
Income Tax Notices for Pre-Resolution Plan period Quashed; “Clean Slate” Theory under IBC prevails Issue Whether the Income Tax Department (Assessing Officer) has jurisdiction to issue notices under Sections 143(2) and 142(1) seeking information or conducting assessment for a period prior to the approval of a Resolution Plan under the Insolvency and Bankruptcy Code (IBC),… Read More »
CSR Expenditure allowed as Section 80G Deduction; “Mandatory” nature is no bar Issue Whether expenditure incurred by a company to fulfill its mandatory Corporate Social Responsibility (CSR) obligations under the Companies Act, 2013, is eligible for deduction under Section 80G of the Income-tax Act, 1961, despite being disallowed as business expenditure under Section 37(1). Facts… Read More »
Section 69A Addition on “Penny Stock” Sale Deleted; Long-Term Holding Proves Genuine Investment Issue Whether the sale proceeds from shares of a company alleged to be a “penny stock” can be taxed as unexplained money under Section 69A, when the assessee had purchased the original shares years ago via banking channels, held them for a… Read More »
Unexplained Credits in Firm’s Account Taxed; 60% Tax Rate u/s 115BBE held Not Retrospective for AY 2017-18 I. Unexplained Credits in Firm’s Account (Section 69A) Issue Whether cash deposits and credits in a partnership firm’s bank account can be taxed as the firm’s undisclosed income when the assessee claims the firm was dissolved and the… Read More »