Monthly Archives: January 2026

Reassessment Remanded: Addition for Unexplained Investment in Securities Set Aside for Verification of Duplicate Reporting (NSE vs. NSDL/Bank Data)   ISSUE Whether the Assessing Officer (AO) was justified in making separate additions under Section 69 for “purchase of securities” based on NSE data and “transactions reported in Form 61B” (Statement of Reportable Account) without verifying… Read More »

Date of Issuance Prevails Over Date of Signing: Section 148 Notice Issued on 01-04-2021 Without Following New Section 148A Procedure is Invalid ISSUE Whether a reassessment notice under Section 148, which was digitally signed by the Assessing Officer on 31.03.2021 (under the old regime) but was actually issued/emailed via the ITBA portal on 01.04.2021 (when… Read More »

Section 43B Allowability: Customs Duty Paid Under Protest Constitutes “Actual Payment” and is Deductible; Disallowance Would Cause Double Taxation if Refund is Taxed Later ISSUE Whether the payment of Customs Duty made by the assessee “under protest” upon a demand raised by authorities qualifies as an allowable deduction under Section 43B in the year of… Read More »

Ad-hoc Disallowance Based on “Increase in Expenses” Invalid; Turnover Difference Due to Rounding Off Deleted; TDS Disallowance Upheld for Lack of Auditor’s Rectification   ISSUES Ad-hoc Disallowance: Whether the Assessing Officer (AO) is justified in making a flat 50% disallowance on miscellaneous expenses (meetings/AGM) merely because the amount increased compared to the previous year, despite… Read More »

Consistent Treatment for Loans, Recorded Cash Cannot be Taxed u/s 69A, and Double Disallowances Deleted ISSUES Section 68 (Loan): Whether an addition u/s 68 regarding a loan from a lender (‘H’) can be sustained when the Tribunal has already accepted the genuineness and creditworthiness of the same lender in a prior year (AY 2020-21). Section… Read More »

Consistent Treatment for Loans, Recorded Cash Cannot be Taxed u/s 69A, and Double Disallowances Deleted ISSUES Section 68 (Loan): Whether an addition u/s 68 regarding a loan from a lender (‘H’) can be sustained when the Tribunal has already accepted the genuineness and creditworthiness of the same lender in a prior year (AY 2020-21). Section… Read More »

Consistency in Approvals: Rejection of R&D Facility Approval Under Section 35(2AB) for Earlier Years Remanded for Reconsideration After Approval Granted for Subsequent Year   ISSUE Whether the authorities are justified in rejecting the approval for an In-house R&D facility under Section 35(2AB) for earlier assessment years (2015-16 and 2016-17) when the same facility has been… Read More »

DEPB Benefits are Intrinsically Linked to Export Business; Must be Included in Turnover for Gross Profit Estimation and Not Taxed Separately   ISSUE Whether Duty Entitlement Pass Book (DEPB) income constitutes “operating income” directly connected with normal export operations, and consequently, whether the Assessing Officer is justified in excluding DEPB receipts from the turnover to… Read More »

Writ Jurisdiction Refused: Show Cause Notice Under Benami Act Held Valid Based on Incriminating Excel Sheets and Statements of Beneficial Owners   ISSUE Whether a Show Cause Notice issued under Section 24(1) of the Prohibition of Benami Property Transactions Act, 1988 is valid when based on incriminating digital evidence (Excel sheets) found during a search… Read More »

Income Declaration Scheme (IDS): Tax Paid as Self-Assessment Tax Upon Default of Installment Must Be Adjusted Against IDS Liability; Denial of Form-4 Held Arbitrary   ISSUE Whether an amount paid as Self-Assessment Tax (after the IDS declaration was deemed void due to non-payment of the final installment) can be treated as payment towards the Income… Read More »