Monthly Archives: May 2026

Reassessment Notice Issued Beyond Surviving-Time Computation Period After COVID-19 Relaxations Is Void Ab Initio Issue Whether a fresh reassessment notice issued on 24-7-2022 under the amended regime for Assessment Year 2013-14 was barred by limitation under Section 149, considering the surviving-time computation and the limits clarified by the Supreme Court in Union of India v.… Read More »

Summons Issued Under Section 131(1A) by Investigation Officer Upheld as Valid and Free of Malice Issue Whether statutory summons issued under Section 131(1A) by an Income Tax Officer (Investigation) can be deemed invalid or illegal on grounds of malice or jurisdictional error, given that a senior tax official was remotely related to parties in an… Read More »

Valuation Report from Preceding Year is Insufficient for Determining Share Premium Exemption, Matter Remanded Issue Whether an assessee can rely on a Discounted Cash Flow (DCF) valuation report obtained in a preceding year to justify a share premium under Section 56(2)(viib), and whether the matter should be remanded if neither the assessee nor the Assessing… Read More »

Gains from Sale of Delivery-Based Share Investments Are Assessable Under Capital Gains, Not Business Income Issue Whether the gains arising from the sale of listed equity shares, which were consistently held as investments and traded on a delivery basis, are assessable under the head “Capital Gains” or as “Business Income,” given that the assessee utilized… Read More »

Delhi High Court Dismisses Writ Petition Invoking Forum Conveniens as Assessee’s R&D Unit is in Haryana Issue Whether the Delhi High Court should exercise its discretionary writ jurisdiction when the assessee’s R&D unit and administrative filings are based in Haryana, merely because the approving authority (DSIR) is located in Delhi and a minor part of… Read More »

Depreciation on Amalgamation Goodwill and Internal CUP-Based Power Benchmarking Allowed Following Past Precedents Issue Issue I: Whether goodwill arising from a court-approved amalgamation scheme constitutes an intangible asset representing commercial rights eligible for depreciation under Section 32(1)(ii). Issue II: Whether the internal Comparable Uncontrolled Price (CUP) method, based on the rate at which non-eligible units… Read More »

AO’s Plausible View on Trust Fund Accumulation Cannot Be Revised Merely Due to Different Opinion Issue Whether the Commissioner (Exemptions) can invoke revisional jurisdiction under Section 263 to override an Assessing Officer’s plausible view when the Assessing Officer has already verified the trust’s fund accumulation and utilization documents. Whether an unnotified invocation of Explanation 2… Read More »

AO’s plausible view cannot be revised under Section 263 merely due to different opinion. Issue Whether the Commissioner (Exemptions) can invoke revisional jurisdiction under Section 263 based on a different opinion or Explanation 2 when the Assessing Officer has already conducted inquiries, applied his mind, and taken a plausible view regarding the utilization of accumulated… Read More »

Assessee Belonging to Scheduled Tribe Allowed Reconsideration as Revisional Order Lacked Necessary Local Enquiry Issue Whether the revisional authority was justified in denying relief under Section 264 without conducting or causing a local enquiry or adopting a pragmatic approach, when doubts existed regarding the source of cash deposits and business turnover of a Scheduled Tribe… Read More »