Notice under Section 148 by Jurisdictional AO Quashed; Faceless Scheme Mandates FAO Jurisdiction Issue Jurisdiction under Faceless Scheme: Whether a notice under Section 148 (for income escaping assessment) can be issued by the Jurisdictional Assessing Officer (JAO) after the implementation of the Faceless Jurisdiction of Income Tax Authorities Scheme, 2022 and the e-Assessment of… Read More »
Case Transfer Upheld: Centralization for “Coordinated Investigation” trumps Assessee’s Inconvenience Issue Justification of Transfer: Whether the transfer of the petitioner’s income tax jurisdiction from Chandigarh to Panaji (Goa) under Section 127 is valid based on links found during a search on third parties. Section 127 vs. 158BD: Whether the Revenue is obligated to follow the… Read More »
Assessment quashed for ignoring assessee’s reply; Violation of Natural Justice Issue Whether an assessment order passed under the Faceless Assessment Scheme (Section 144B) is valid if the Assessing Officer (AO) completely overlooks the detailed reply and documents submitted by the assessee in response to a Show Cause Notice (SCN), thereby violating the principles of… Read More »
Capital Gains addition deleted; GPA is not a Joint Development Agreement (JDA) Issue Whether an addition for undeclared capital gains can be sustained against an assessee based on a document presumed to be a Joint Development Agreement (JDA), which was actually a General Power of Attorney (GPA), and where the assessee was not the… Read More »
12.5% Ad-hoc Disallowance on Alleged Bogus Purchases Deleted due to Lack of Incriminating Material Issue Whether the Revenue can disallow purchase expenditure (specifically, an estimated 12.5% of it) under Section 37(1) solely based on employee statements recorded during a search conducted years later, without finding specific incriminating material proving the transactions were bogus. Facts… Read More »
Foreign Tax Credit allowed for past year due to Loss Set-off; MAT inapplicable to Nationalized Banks 1. Foreign Tax Credit (FTC) Allowed Despite Timing Mismatch Issue: Can a bank claim Foreign Tax Credit (FTC) in the current year (AY 2013-14) for taxes paid abroad in a previous year (AY 2012-13) if the credit was… Read More »
Industrial Development Corporation’s infrastructure activities held as Charitable; Section 11 Exemption Allowed Issue Whether a statutory corporation established for developing industrial infrastructure (roads, drainage, water supply) is engaged in “trade, commerce, or business” under the proviso to Section 2(15) of the Income-tax Act merely because it collects fees or sells land, or if such… Read More »
Transitioned CENVAT credit usable for pre-deposit in Service Tax appeal via DRC-03 Issue Whether CENVAT credit accumulated prior to the GST regime and transitioned into the GST Electronic Credit Ledger (under Section 140 of the CGST Act) can be utilized to make the mandatory pre-deposit required for filing an appeal against a Service Tax… Read More »
IMPORTANT INCOME TAX CASE LAWS 17.01.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 4 Dharmapuri District Co-operative Milk Producers Union Ltd. v. DCIT Government grant-in-aid received for the specific purpose of rehabilitation and clearing liabilities is a Capital Receipt (purpose test applied) and not a revenue receipt taxable as… Read More »
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 »