Daily Archives: July 25, 2026

Estimated Addition On Suppressed Professional Receipts Based On Third-Party Statements Without Account Rejection Is Unsustainable

By | July 25, 2026
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Estimated Addition On Suppressed Professional Receipts Based On Third-Party Statements Without Account Rejection Is Unsustainable Issue Validity of Reassessment Addition Based on Estimation: Whether an addition made on account of alleged suppression of professional receipts—calculated purely on estimated hospital consultation charges and manager statements without rejecting the assessee’s books of account or bringing independent corroborative… Read More »

PCIT Can Revise Faceless Assessment Orders Where AO Fails To Enquire Into Unverified Claims

By | July 25, 2026
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PCIT Can Revise Faceless Assessment Orders Where AO Fails To Enquire Into Unverified Claims Issue Jurisdiction under Section 263 over Faceless Assessment Orders: Whether a Principal Commissioner of Income Tax (PCIT) has the legal authority under Section 263 to revise an assessment order passed under Section 144B by the National Faceless Assessment Centre (NaFAC). Validity… Read More »

Interest Paid On Related-Party Loans Cannot Be Disallowed By Netting Trade Advances Or Adding Notional Interest

By | July 25, 2026
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Interest Paid On Related-Party Loans Cannot Be Disallowed By Netting Trade Advances Or Adding Notional Interest Issue Netting of Loan and Current Accounts under Section 40A(2): Whether the Assessing Officer (AO) can disallow interest paid on an unsecured loan from a related party by netting it against a trade advance/current account, without proving that the… Read More »

Reassessment Notice Premised On Factually Incorrect Scrip Name Is Invalid And Liable To Be Quashed

By | July 25, 2026
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Reassessment Notice Premised On Factually Incorrect Scrip Name Is Invalid And Liable To Be Quashed Reassessment Notice Premised On Factually Incorrect Scrip Name Is Invalid And Liable To Be Quashed Issue Validity of Reassessment Premised on Factually Incorrect Information: Whether a reopening notice issued under Section 148 read with Section 147 is legally sustainable when… Read More »

Cancellation of Section 12AA Registration Unsustainable When Plot Sales Retain Charitable Public Utility Character

By | July 25, 2026
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Cancellation of Section 12AA Registration Unsustainable When Plot Sales Retain Charitable Public Utility Character Issue Validity of Registration Cancellation under Section 12AA: Whether the DIT(E) was justified in cancelling the assessee’s registration under Section 12AA on the ground that it was involved in the sale of plots, despite its activities retaining the character of a… Read More »

Registration under Section 12AB cannot be cancelled retroactively, for procedural lapses, or Section 13 violations.

By | July 25, 2026
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Registration under Section 12AB cannot be cancelled retroactively, for procedural lapses, or Section 13 violations. Issue Jurisdiction under Section 12AA Post-April 1, 2021: Whether the Pr.CIT(C) had the legal power to cancel registration under Sections 12AA(3) and 12AA(4) after Section 12AA(5) rendered the section inapplicable on or after April 1, 2021. Retrospective Application of Specified… Read More »

Agricultural Land Within Statutory Distance of Tambaram Municipality Constitutes Capital Asset, On-Money Restricted to Admitted Cash, and 70% Indexed Cost Allowed

By | July 25, 2026
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Agricultural Land Within Statutory Distance of Tambaram Municipality Constitutes Capital Asset, On-Money Restricted to Admitted Cash, and 70% Indexed Cost Allowed Issue Capital Asset Determination: Whether land located within 4.45 km of Tambaram Municipality (population exceeding 1.65 lakh) qualifies as a capital asset under Section 2(14)(iii)(b), making the gains arising from its sale taxable under… Read More »

INCOME-TAX (SECOND AMENDMENT) RULES, 2026 – AMENDMENT IN RULE 157

By | July 25, 2026
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INCOME-TAX (SECOND AMENDMENT) RULES, 2026 – AMENDMENT IN RULE 157 INCOME-TAX (SECOND AMENDMENT) RULES, 2026 – AMENDMENT IN RULE 157 NOTIFICATION G.S.R. 646(E) [NO. 94/2026/F. NO. 370142/24/2026-TPL], DATED 21-7-2026 In exercise of the powers conferred by section 533 read with section 262 of the Income-tax Act, 2025 (30 of 2025), the Central Board of Direct Taxes hereby makes the following rules further… Read More »