Reassessment issued beyond three years with Principal Commissioner approval is void ab initio. Issue Whether an order under Section 148A(d) and a notice under Section 148 issued after more than three years from the end of the relevant assessment year are valid when approved by the Principal Commissioner instead of the specified higher authority under… Read More »
Reassessment beyond three years approved by Principal Commissioner instead of Principal Chief Commissioner is invalid. Issue Whether reassessment proceedings initiated beyond three years from the end of the relevant assessment year are legally sustainable when approval under Section 151 was granted by the Principal Commissioner instead of the specified higher authority (Principal Chief Commissioner/Principal Director… Read More »
Faceless assessment order passed with unnotified income additions violates natural justice and warrants quashing. Issue Whether a final faceless assessment order passed under Section 144 read with Section 144B—making an enhanced addition significantly higher than proposed in the initial show-cause notice without offering a further opportunity of hearing—violates principles of natural justice and is liable… Read More »
Reassessment completed by a different Officer without issuing Section 148 notice or Section 127 order is invalid. Issue Whether a reassessment completed by an Assessing Officer under Section 143(3) read with Section 147 is legally valid when the Section 148 notice was issued by a different officer, no fresh notice was issued by the assessing… Read More »
Clerical errors in Section 153D approval and unproven search cash do not invalidate assessment. Issue Section 153D Approval Validity: Whether clerical defects, missing DIN, or advisory notes in a Section 153D approval letter invalidate the search assessment, and whether changing the addition section from 69 to 69A by CIT(A) violates natural justice. Unexplained Cash (Section… Read More »
Flawed CIT(A) order ignoring assessment grounds and new agricultural land evidence warrants de novo remand. Flawed CIT(A) order ignoring assessment grounds and new agricultural land evidence warrants de novo remand. Issue Whether an appellate order passed under Section 250—based on the incorrect factual premise that the appeal arose from a Section 154 rectification order rather… Read More »
Stamp duty valuation for Section 56(2)(x) applies based on initial allotment if banking payments occurred. Issue Whether an allotment letter issued by a builder—followed by partial consideration paid via banking channels—qualifies as an “agreement” for the purpose of the proviso to Section 56(2)(x)(b), entitling the assessee to adopt the stamp duty value as on the… Read More »
Capital gains do not accrue under JDA until encumbrances are cleared and possession is handed over. Issue Whether entering into a registered Joint Development Agreement (JDA) constitutes a “transfer” under Section 2(47) read with Section 45 in Assessment Year 2016-17, when the agreement explicitly conditions the transfer of possession on the removal of encumbrances which… Read More »
AO must allow consequential Section 35(2AB) relief upon DSIR revision and independently examine Section 35(1)(i) claims. AO must allow consequential Section 35(2AB) relief upon DSIR revision and independently examine Section 35(1)(i) claims. Issue Consequential Relief on DSIR Revision: Whether an assessee is entitled to consequential weighted deduction under Section 35(2AB) if DSIR revises or enhances… Read More »
DSIR certification rules shift weighted deduction binding limits post-01.07.2016, while balance additional depreciation remains claimable in succeeding years. Issue R&D Weighted Deduction (Pre & Post-01.07.2016): Whether DSIR quantification in Form 3CL is binding for computing weighted deduction under Section 35(2AB) for AY 2016-17 versus AYs 2017-18 to 2018-19 following the amendment to Rule 6(7A). Additional… Read More »