Interest on Delayed Refund under Vivad Se Vishwas Act (VSV) Allowed; Interest on Interest also granted Issue Whether an assessee is entitled to interest under Section 244A of the Income-tax Act on a refund determined under the Direct Tax Vivad Se Vishwas Act, 2020 (DTVSV Act) if the department delays the actual payment, and… Read More »
TDS credit allowed even if not reflected in Form 26AS due to deductor’s default Issue Whether an assessee can be denied credit for Tax Deducted at Source (TDS) solely because the amount is not reflected in Form 26AS, even though the tax was actually deducted from the income but not deposited by the deductor… Read More »
Surcharge on Discretionary Trusts restricted to slab rates; Flat 37% surcharge rejected Issue Whether an Assessing Officer (AO) can levy a flat surcharge of 37% on a charitable trust (assessed as an AOP without Section 12A registration) where the income is chargeable at the Maximum Marginal Rate (MMR), or if the surcharge must follow… Read More »
Notice under Section 148A(b) quashed for confusing “Inquiry” with “Show Cause” Issue Whether an Assessing Officer (AO) can issue a notice under Section 148A(b) to call for information and conduct an inquiry, effectively mixing the distinct stages of Section 148A(a) (inquiry) and Section 148A(b) (show cause). Facts Assessment Year: 2019-20. Source of Action: The… Read More »
Additions based on uncorroborated WhatsApp chats and selective reading of seized documents deleted Issue The central issue across these five distinct rulings is the evidentiary value of materials found during search and seizure operations—specifically, whether loose sheets, WhatsApp chats, and internal ledgers can be used to make additions under Sections 68 and 69A without… Read More »
Bonus to directors remanded for shareholding check; Non-reporting of transporter details under 194C(7) does not attract disallowance I. Bonus to Directors: Performance or Dividend in Disguise? Issue Whether a bonus paid to directors, which was disallowed by the Assessing Officer (AO) as being “in lieu of dividend” under Section 36(1)(ii), can be allowed as… Read More »
Government Grant for Rehabilitation of Cooperative Society Held as Capital Receipt, Not Taxable Income Issue Whether a grant-in-aid received by a co-operative milk union from the Government under a rehabilitation scheme should be treated as a capital receipt (non-taxable) or a revenue receipt (taxable income), specifically when the funds are intended to clear liabilities… Read More »
IMPORTANT INCOME TAX CASE LAWS 20.01.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 2(15) CIT (Exemptions) v. Gujarat Industrial Development Corporation [Charitable Purpose] The development of industrial estates, roads, and drainage by a state corporation is a charitable activity. The sale of plots is incidental to this main object… Read More »
Section 264 Revision allowed to correct Assessee’s own data entry errors; PCIT’s rejection overturned Issue Whether the Principal Commissioner (PCIT) can reject a Revision application under Section 264 solely because the errors in the tax return (which led to a tax demand) were committed by the assessee (data entry/punching errors) and not by the… Read More »
Undated Satisfaction Note Vitiates Section 153C Proceedings; Jurisdiction Quashed Issue Whether the assumption of jurisdiction by the Assessing Officer (AO) under Section 153C is valid if the “Satisfaction Note”—a mandatory prerequisite—is undated in the official file, and there is an unexplained delay in supplying it to the assessee. Facts The Search: A search and… Read More »