Monthly Archives: May 2026

Penalty under Section 271D must be kept in abeyance pending appeal of the quantum assessment. Issue Whether a penalty order passed under Section 271D and the consequential notice of demand under Section 156 can be enforced, or if they should be kept in abeyance, when the core quantum assessment order passed under Section 147 is… Read More »

TOLA Extensions Encompass Rectification Proceedings, Validating the Revenue’s Order Passed Within the Extended Statutory Time Limit Issue Whether a rectification order passed by the Assessing Officer under Section 154 on September 17, 2021, to rework brought-forward losses is barred by limitation under Section 154(7), or whether the limitation period was legally extended by virtue of… Read More »

Reassessment notice issued after March 31, 2022 for Assessment Year 2015-16 is barred by limitation and quashed. Issue Whether a reassessment notice issued on April 23, 2022, under Section 148 for the Assessment Year 2015-16 is barred by limitation in view of the first proviso to Section 149 of the Income-tax Act, which prohibits reopening… Read More »

Contradictory financial disclosures, incorrect persistent loss parameters, and entity-level adjustments invalidate the transfer pricing assessment. Issue Whether the Transfer Pricing Officer (TPO) and Assessing Officer (AO) erred in their transfer pricing analysis under the Transactional Net Margin Method (TNMM) by improperly including or excluding comparables based on flawed Related Party Transaction (RPT) and persistent loss… Read More »

Amalgamation Benefits Pending Division Bench Decision Require Quashing Assessment and Remanding for Fresh Adjudication Issue Whether reopened assessments denying the set-off of brought-forward losses of a sick company under Section 72A and making additions under Section 41(1)(b) can be sustained when they rely on a Single Bench order that has been stayed by a Division… Read More »

Unsecured Loans Cannot Be Treated as Unexplained Cash Credits Based Solely on Past Search Material Without Independent Verification Issue Whether an addition under Section 68 of the Income-tax Act, 1961 can be sustained when the assessee discharged its initial onus by proving the identity, creditworthiness, and genuineness of the lenders, while the Assessing Officer made… Read More »

Assessment Completed Without Video-Conference or Final Reply Violates Natural Justice, Requiring Remand for Fresh Adjudication Issue Whether the additions and disallowances made by the Assessing Officer under Sections 41(1) and 14A can be sustained when the assessment and appellate orders were passed in violation of the principles of natural justice without granting a requested video-conferencing… Read More »

Serving a demand notice establishes necessary compliance knowledge, validating prosecution under Section 276B for wilful TDS default. Issue Whether the criminal prosecution initiated under Section 276B of the Income-tax Act against the assessee-firm and its officers for failing to remit deducted TDS can be quashed under Section 482 of the Cr.P.C., when the service of… Read More »