Monthly Archives: June 2026

Principal Commissioner cannot invoke revisionary powers under Section 263 when the Assessing Officer has already conducted proper inquiries and verified the expenses during assessment.

By | June 19, 2026
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Principal Commissioner cannot invoke revisionary powers under Section 263 when the Assessing Officer has already conducted proper inquiries and verified the expenses during assessment. Principal Commissioner cannot invoke revisionary powers under Section 263 when the Assessing Officer has already conducted proper inquiries and verified the expenses during assessment. Issue Whether the Principal Commissioner of Income… Read More »

Adjusting substantial tax refunds against a disputed demand without a prior Section 245 intimation is unlawful when the taxpayer has already deposited the mandatory 20% amount.

By | June 19, 2026
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Adjusting substantial tax refunds against a disputed demand without a prior Section 245 intimation is unlawful when the taxpayer has already deposited the mandatory 20% amount. Adjusting substantial tax refunds against a disputed demand without a prior Section 245 intimation is unlawful when the taxpayer has already deposited the mandatory 20% amount. Issue Whether the… Read More »

Reassessment notice under Section 148 is quashed as loose third-party loose sheets carry no nexus to the taxpayer.

By | June 19, 2026
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Reassessment notice under Section 148 is quashed as loose third-party loose sheets carry no nexus to the taxpayer. Reassessment notice under Section 148 is quashed as loose third-party loose sheets carry no nexus to the taxpayer. Issue Whether the tax authorities are legally justified in issuing a reassessment notice under Section 148 for Assessment Year… Read More »

Rebate under Section 87A is computed on the “total income” and cannot be denied on tax payable for Short-Term Capital Gains under Section 111A.

By | June 19, 2026
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Rebate under Section 87A is computed on the “total income” and cannot be denied on tax payable for Short-Term Capital Gains under Section 111A. Issue Whether the Central Processing Centre (CPC) / Assessing Officer is legally justified in restricting the tax rebate under Section 87A only to the tax computed on normal slab incomes, thereby… Read More »

Negligible seven-day delay in filing a loss return is condonable under Section 119(2)(b) to allow the carry forward of losses.

By | June 19, 2026
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Negligible seven-day delay in filing a loss return is condonable under Section 119(2)(b) to allow the carry forward of losses. Negligible seven-day delay in filing a loss return is condonable under Section 119(2)(b) to allow the carry forward of losses. Issue Whether the tax authorities are justified in rigidly rejecting an application under Section 119(2)(b)… Read More »

Property investment by a homemaker funded directly via her father’s bank account cannot be taxed under Section 69 merely for lacking a gift deed.

By | June 19, 2026
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Property investment by a homemaker funded directly via her father’s bank account cannot be taxed under Section 69 merely for lacking a gift deed. Issue Whether an investment in an immovable property by a homemaker can be treated as an unexplained investment under Section 69 read with Section 115BBE when the entire purchase consideration was… Read More »

Bona fide mistake by elderly taxpayer in using simplified ITR form exempts them from Black Money Act non-disclosure penalties.

By | June 19, 2026
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Bona fide mistake by elderly taxpayer in using simplified ITR form exempts them from Black Money Act non-disclosure penalties. Issue Whether a harsh penalty under Section 43 of the Black Money Act, 2015 can be sustained for the non-disclosure of foreign bank accounts against an 80-year-old taxpayer who mistakenly used ITR-1 (Sahaj), paid full taxes… Read More »

Bona fide belief of a salaried employee exempts them from harsh Black Money Act non-disclosure penalties.

By | June 19, 2026
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Bona fide belief of a salaried employee exempts them from harsh Black Money Act non-disclosure penalties. Bona fide belief of a salaried employee exempts them from harsh Black Money Act non-disclosure penalties. Issue Whether a penalty of ₹10 lakh under Section 42 read with Section 46 of the Black Money Act, 2015 can be sustained… Read More »

AO cannot invoke Section 69C over business expediency when foreign remittance sources are fully documented, nor duplicate additions for suo motu disallowed CSR expenses.

By | June 19, 2026
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AO cannot invoke Section 69C over business expediency when foreign remittance sources are fully documented, nor duplicate additions for suo motu disallowed CSR expenses. Issue Whether the Assessing Officer (AO) can legally invoke Section 69C to tax recorded foreign remittances as unexplained expenditure based solely on a perceived lack of commercial expediency, and whether a… Read More »

Insurance sector rules permit outsourcing costs absent formal regulatory penalties, and Section 44 overrides standard Section 14A exempt income disallowances.

By | June 19, 2026
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Insurance sector rules permit outsourcing costs absent formal regulatory penalties, and Section 44 overrides standard Section 14A exempt income disallowances. Issue Whether the outsourcing fees paid to service aggregators by an insurance firm can be disallowed under Explanation 1 to Section 37(1) as an “expenditure prohibited by law” without an official regulatory finding of a… Read More »