Timely filing crystallizes the right to carry forward losses, which subsequent reporting omissions cannot extinguish. Issue Whether an assessee can be denied the benefit of carrying forward and setting off losses validly determined in a timely filed return under section 139(1) for a particular assessment year, merely due to an inadvertent omission or technical error… Read More »
Cash deposits previously taxed or covered by amnesty schemes cannot be subjected to double taxation. Issue Whether cash deposits can be taxed as unexplained money under Section 69A in a subsequent year if a portion of the amount has already been taxed in a preceding assessment year or declared under an amnesty scheme. Whether the… Read More »
Surrendering tenancy rights for a larger redeveloped flat constitutes capital gains qualifying for Section 54F exemption. Issue Whether the receipt of a larger flat as permanent alternate accommodation under a redevelopment arrangement in lieu of surrendering tenancy rights constitutes property received for inadequate consideration taxable under section 56(2)(x), or a transfer of a capital asset… Read More »
Investment in a new house jointly with a wife qualifies for full Section 54 deduction. Issue Whether an individual assessee can claim a tax deduction under Section 54 on the entire investment made in a new residential property when the property is purchased jointly in the names of the assessee and his wife. Facts The… Read More »
Insurance compensation adjusted against business loss cannot be separately taxed, and consequential concealment penalty fails. Issue Whether insurance compensation received for fire damage to commercial stock and interiors, already adjusted against the actual loss in the books, can be separately taxed under section 45(1A) or section 28. Whether a penalty levied for concealment of income… Read More »
Jurisdiction objections must be timely, DTAA benefits apply to DDT, and accrued provisions are allowable. Issue Whether an assessment order passed by an Additional CIT authorized under section 120(4)(b) is void ab initio if the assessee fails to raise a jurisdictional objection within the statutory timeline of section 124. Whether Dividend Distribution Tax (DDT) levied… Read More »
Reversal of previously taxed bonus provisions and accrued year-end brokerage liabilities are deductible business expenses. Reversal of previously taxed bonus provisions and accrued year-end brokerage liabilities are deductible business expenses. Issue Whether an income-tax deduction is permissible for the reversal of a bonus provision that had already been subjected to tax in preceding years under… Read More »
Availability of sufficient interest-free funds creates a legal presumption that investments were made out of them. Availability of sufficient interest-free funds creates a legal presumption that investments were made out of them. Issue Whether a disallowance of interest under section 36(1)(iii) of the Income-tax Act, 1961 is legally sustainable when the assessee possesses mixed funds… Read More »
Reopening scrutiny assessment after four years without fresh material or failure to disclose is impermissible. Issue Whether the Assessing Officer can legally reopen a completed scrutiny assessment under section 147 after the expiry of four years solely to reclassify software expenses as capital assets, in the absence of any new tangible material or any allegation… Read More »
CIT(E) cannot dilute a binding jurisdictional High Court precedent by inserting speculative future Supreme Court appeal caveats in registration orders. Issue Whether the Commissioner of Income-tax (Exemptions) [CIT(E)], while granting fresh registration and approval under sections 12AB and 80G based on a binding jurisdictional High Court precedent, can legally incorporate a caveat making the grant… Read More »