Monthly Archives: May 2026

High Court Sustains Reassessment as Brief Approval Language Satisfies Mandatory Jurisdictional Sanction Requirements under Section 151 Issue Whether the Principal Commissioner’s approval for reopening an assessment is valid under Section 151 if the satisfaction is recorded in a brief, concise manner rather than a detailed speaking order. Facts Information Receipt: The Assessing Officer (AO) received… Read More »

Assessment Order Passed by Authority Lacking Pecuniary Jurisdiction Is Legally Void and Ab Initio Invalid Issue Whether an assessment order passed under Section 143(3) is valid if the initial notice under Section 143(2) was issued by an Income Tax Officer (ITO) who lacked the pecuniary jurisdiction to handle the case based on the declared income.… Read More »

Presumptions from Third-Party Seized Documents and Procedural Mandates for Post-2021 Search Assessments Favor Taxpayer Relief Issue Whether additions for unexplained expenditure can be sustained based solely on unsigned loose papers found with a third party without independent corroborative evidence. Whether an assessment for a year preceding a search (conducted after April 1, 2021) is valid… Read More »

Additions Based on Third-Party Loose Papers and Incorrect Post-Search Assessment Procedures Are Legally Sustainable Issue Whether an addition for unexplained expenditure can be made against an assessee based on an unsigned loose paper found with a third party, without independent corroboration. Whether an assessment for a year preceding a search (conducted after 01-04-2021) is valid… Read More »

100 Percent Addition for Bogus Purchases Is Sustainable Only at 6 Percent Based on Precedent Issue Whether the revenue is justified in making a 100% addition for bogus purchases from the Bhanwarlal Jain Group when the appellate authorities and High Courts have consistently restricted such disallowances to 6% in similar matters. Facts The assessee-company recorded… Read More »

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 »