Daily Archives: May 13, 2026

Reassessment Under Section 148 Quashed as Assessing Officer Cannot Re-Litigate Issues Already Annulled by CIT(A) Issue Whether the Assessing Officer (AO) is legally permitted to initiate reassessment proceedings under Section 148 to make the exact same addition that was previously annulled by the Commissioner of Income-tax (Appeals) [CIT(A)] in the original assessment. Facts Original Assessment:… Read More »

Exchange of Old Flat for New in Redevelopment Does Not Attract Section 56(2)(x) Tax Liability Issue Whether the receipt of a new residential flat in exchange for surrendering an old flat under a redevelopment agreement constitutes “inadequate consideration” for the purposes of an addition under Section 56(2)(x). Facts The assessee was a member of a… Read More »

Retrospective Applicability of 10% Tolerance Band Under Section 50C and Indexation from Acquisition Date Upheld Issue Whether the 10% tolerance band for stamp duty valuation under Section 50C is retrospectively applicable and valid for Section 56. Whether the cost of inflation indexation for an under-construction property should be calculated from the year of the allotment/agreement… Read More »

Reassessment Beyond Four Years is Void if All Material Facts Were Fully and Truly Disclosed Issue Whether a reassessment notice issued under Section 148 after the expiry of four years from the end of the relevant assessment year is legally sustainable when the original assessment was completed under Section 143(3) and the assessee had disclosed… Read More »

Short Deduction of Tax Cannot Trigger Disallowance Under Section 40(a)(ia) Where Tax Was Faithfully Deducted Issue Whether a disallowance under Section 40(a)(ia) can be invoked in a case of “short deduction” of tax, where the assessee deducted tax under one provision (Section 194C) but the Revenue contended it should have been deducted under another (Section… Read More »

Unsubstantiated Foreign Commission Disallowance is Upheld but Reduced to Prevent Double Taxation of Written-Back Amounts Issue Whether the disallowance of foreign agency commission is justified when the identity of the recipient and services rendered remain unproven, and how to treat such disallowances if the liability is subsequently written back and offered to tax in a… Read More »

Schedule S – Detail of Income from Salary AY 2026-27 ‘Schedule S’ in the Income Tax Return (ITR) form captures details of income earned under the head “Salaries.” It applies to taxpayers deriving income from employment, whether as full-time or part-time employees. This schedule requires detailed information about the employer, including their name, Tax Deduction… Read More »