Writ remedy is barred when an efficacious statutory appeal is available under GST laws. Issue Whether a writ petition under Article 226 of the Constitution of India challenging a Show Cause Notice (SCN) and an Order-in-Original is maintainable when the petitioner has a statutory, efficacious alternative remedy of appeal available under Section 107 of the… Read More »
INCOME TAX CASE LAW DIGEST 04.06.2026 INCOME TAX CASE LAW DIGEST 04.06.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 48 / 55 (Cost of Improvement/Acquisition) Jugesh Saluja vs. Deputy Commissioner of Income-tax Claim of indexed cost of construction cannot be fully denied solely due to the absence of old… Read More »
Transfer pricing adjustments must be deleted based on consistency if identical issues were cleared previously. Issue Whether a Transfer Pricing Officer (TPO) can make an arm’s length price adjustment on management fees paid to an Associated Enterprise (AE) if the tribunal has already deleted identical adjustments for the assessee in previous assessment years. Whether an… Read More »
Mechanical approval under Section 153D without perusing assessment records entirely vitiates the search assessment. Issue Whether an assessment order passed under Section 153A is legally valid if the mandatory prior approval required under Section 153D was granted by the Joint Commissioner in a mechanical manner without perusing the assessment records, and whether the subsequent insertion… Read More »
Reassessment is vitiated and quashed if the AO blindly invokes Explanation 2(b) despite a completed scrutiny assessment. Issue Whether the reopening of an assessment under Section 147 is legally valid if the Assessing Officer (AO) invokes Explanation 2(b) to Section 147 for verification of bank credits, despite the fact that a regular scrutiny assessment under… Read More »
Protective tax assessments collapse once independent black money proceedings establish the assessee lacks beneficial ownership. Issue Whether a protective assessment addition made under Section 69 of the Income-tax Act, 1961 regarding foreign assets can be sustained if parallel proceedings under the Black Money Act, 2015 definitively conclude that the assessee is not the beneficial owner… Read More »
Penalty proceedings must be remanded if the underlying quantum appeal is pending before appellate authorities. Issue Whether a penalty levied under Section 270A for under-reporting or misreporting of income can be adjudicated independently by the Tribunal while the main quantum appeal for the same assessment year is still pending disposal before the first appellate authority.… Read More »
TDS certificates issued by a borrower create an binding admission of debt, justifying an injunction. Issue Whether a borrower, after issuing a Tax Deducted at Source (TDS) certificate acknowledging an investment, can later deny the financial liability in a money recovery suit, and whether such an acknowledgment justifies the granting of an injunction and a… Read More »
Property buyers escape 20% higher TDS if the seller later reports the transaction and pays taxes. Issue Whether an assessee who deducted TDS at 1% on a property purchase can be held liable for a higher TDS rate of 20% due to the seller’s PAN being inoperative for non-linkage with Aadhaar, if the seller subsequently… Read More »
Absence of decades-old vouchers cannot entirely defeat a capital gains deduction corroborated by sale deeds. Issue Whether an assessee’s claim for the indexed cost of construction and improvement can be rejected in its entirety solely due to the non-production of old bills and vouchers, even when the existence of the superstructure is admitted and corroborated… Read More »