Daily Archives: March 12, 2026

Refund Adjustments vs. Stay of Demand: The 20% Rule Violation This ruling for AY 2005-06 and 2020-21 is a significant victory against “high-handed” recovery tactics. It clarifies that the Income Tax Department cannot override a judicial stay order by unilaterally adjusting refunds, and if they do, they must return the excess with interest. The Legal… Read More »

Reopening Assessment on a “Change of Opinion”: The Finality of Section 35(2AB) Deductions This ruling for AY 2013-14 reinforces the legal boundary between “reassessment” and “review.” It confirms that once an issue has been thoroughly examined during a regular scrutiny assessment, the tax department cannot use reopening provisions to simply take a “second look” at… Read More »