Monthly Archives: June 2026

Reopening Notice Issued Beyond Four Years Quashed Due to Absence of New Tangible Material and Failure to Disclose Issue Whether the Revenue was justified in issuing a reopening notice under Section 148 after the expiry of four years from the end of the relevant assessment year, based solely on third-party search information, when the Assessing… Read More »

Disallowance of Interest and Cash Credit Additions Overturned Due to Proven Business Nexus and Banking Trails Issue Whether the revenue was justified in disallowing interest expenditure on unsecured loans under Section 36(1)(iii) on grounds of non-business diversion, and in making additions under Section 68 for unexplained cash credits, when the assessee demonstrated clear business utilization,… Read More »

Filing Appeal Before Commissioner Appeals Under Section 246A Does Not Require Any Mandatory Pre Deposit Issue Whether an assessee is required to make any pre-deposit of the disputed tax demand as a mandatory condition precedent for filing and entertaining a statutory appeal before the Commissioner (Appeals) under Section 246A. Facts The assessee sought to avail… Read More »

Appeals Lie Against Rectification Orders and Pre-2015 Late Fees Under Section 234E Are Invalidation Issue Whether the CIT(A) was justified in dismissing the assessee’s appeals as time-barred by holding they should have been filed against the original Section 200A intimations rather than the Section 154 rectification orders, and whether late fees under Section 234E could… Read More »

Assessee-Bank Held in Default for Failing to Deduct Tax on LFC Involving Foreign Travel Issue Whether an employer-bank can be treated as an “assessee in default” under Section 201, and held liable for consequential interest under Section 201(1A), for failing to deduct Tax Deducted at Source (TDS) under Section 192 on Leave Fare Concession (LFC)… Read More »

Tribunal Cannot Rectify Order Based on Subsequent Supreme Court Decision or Accept Belated Revenue Applications Issue Whether the Income Tax Appellate Tribunal (ITAT) can exercise its rectificatory jurisdiction under Section 254(2) to amend its earlier order based on a subsequent Supreme Court judgment, and whether the ITAT possesses the statutory power to condone a delay… Read More »

Unexplained Investment Addition Under Section 69 Deleted as Transaction Pertained to Preceding Financial Year Issue Whether the Assessing Officer (AO) was justified in making an addition under Section 69, read with Section 115BBE, for the Assessment Year (AY) 2016-17 based solely on departmental database information, when the underlying property transaction and payment actually occurred in… Read More »