Daily Archives: May 15, 2026

Ad-Hoc Profit Additions and Cash Credit Disallowances Are Impermissible Without Formally Rejecting Books or Provable Discrepancies Issue Issue I (Estimation of Income): Whether the Assessing Officer (AO) was legally justified in making an ad-hoc addition of 1 per cent to the assessee’s net profit rate purely because of a declining net profit ratio, without rejecting… Read More »

Intimation Order Merges With Final Scrutiny Assessment Rendering Parallel Appeals Against Intimation Infructuous Issue Whether an intimation order passed under Section 143(1) merges into the final scrutiny assessment order under Section 143(3) once a case is selected for scrutiny, thereby rendering any parallel appellate proceedings against the initial intimation infructuous. Facts Profile: The assessee is… Read More »

Schedule Part A- Audit information AY 2026-27 About the Schedule ‘Schedule – Audit Information’ in the Income Tax Return (ITR) forms captures audit information. The Audit Information Schedule is a crucial disclosure section for taxpayers engaged in business or profession. It ensures compliance with statutory requirements under sections 44AA and 44AB of the Income-tax Act, 1961. Taxpayers are required to… Read More »

Schedule Nature of Business or Profession AY 2026-27 About the Schedule ‘Schedule – Nature of Business’ in the Income Tax Return (ITR) form is used to report the specific nature of the business or professional activity carried out by the taxpayer during the financial year. This schedule is mandatory for all individuals, HUFs, firms, companies,… Read More »

Delay Condonation Denied as CBDT Circular Five-Year Limitation Overrides Vested Claims and Section 148 Inaction Issue Issue I (Applicability of Circular Timeline): Whether the Principal Commissioner was justified in rejecting an application for condonation of delay under Section 119(2)(b) for filing a return to claim a refund, on the ground that it was filed beyond… Read More »

Schedule 10(13A) – House Rent Allowance (HRA) AY 2026-27 ‘Schedule 10(13A)’ in the Income Tax Return form is used to compute the exempt portion of House Rent Allowance (HRA) under section 10(13A) of the Income-tax Act. The schedule requires disclosure of specific salary components and rent-related details to determine the eligible exemption. It captures details such as… Read More »

Additions Must Restrict Capital Gains to the Correct Assessment Year, Avoid Duplication, and Split Joint Ownership Equally Issue Issue I (Year of Chargeability): Whether the Assessing Officer (AO) erred in computing capital gains for the subject year (AY 2016-17) by including a sale deed executed in a different financial year, while failing to incorporate a… Read More »

Additions Are Deleted For Duplicated Rectification Deeds And Restricted To Equal Partitions For Unspecified Co-ownership Shares Issue Issue I (Duplication of Transaction): Whether the Assessing Officer (AO) was justified in adding the value of a rectification deed as a suppressed sale when the original sale transaction had already been recorded, resulting in double taxation. Issue… Read More »

Schedule 24(b) – Interest on Borrowed Capital AY 2026-27 ‘Schedule 24(b)’ is used to report interest paid on borrowed capital for claiming deduction under Section 24(b) of the Income Tax Act. The assessee must provide detailed information about each loan, including the lender’s name (bank/institution/person), loan account number, date of sanction, total sanctioned amount, outstanding balance as… Read More »

Schedule 80C – Deduction under Section 80C AY 2026-27 ‘Schedule 80C’ in the Income Tax Return pertains to deductions available under Section 80C, which includes investments or payments such as life insurance premium, contributions to provident funds, and deferred annuity schemes. The assessee is required to furnish the eligible amount being claimed as deduction along with… Read More »