Peak Credit Method Is Applicable to Book Entries Outside Regular Accounts for Estimating Undisclosed Income Issue Whether the peak credit method can be applied to estimate undisclosed income from unrecorded book entries, rather than summing all credit entries without accounting for debits. Facts The case pertains to Assessment Year 2022–23 under the Income-tax Act, 1961.… Read More »
Ex-Parte Section 69A Assessment Remanded to AO for Fresh Hearing Subject to Assessee Paying Costs Ex-Parte Section 69A Assessment Remanded to AO for Fresh Hearing Subject to Assessee Paying Costs Issue Whether an ex-parte reassessment order treating cash deposits and withdrawals as unexplained money under Section 69A should be set aside and remanded for fresh… Read More »
Income Defaulting Under IDS 2016 Assessed as Unexplained Money Under Section 69A Upheld by Supreme Court Income Defaulting Under IDS 2016 Assessed as Unexplained Money Under Section 69A Upheld by Supreme Court Issue Whether income brought to tax due to default under the Income Declaration Scheme (IDS), 2016 is assessable as unexplained money under Section… Read More »
Reassessment Issued After Scrutiny Without Proving Failure to Disclose Material Facts Quashed as Void Reassessment Issued After Scrutiny Without Proving Failure to Disclose Material Facts Quashed as Void Issue Whether a reassessment notice issued under Section 148 beyond four years after a completed Section 143(3) scrutiny assessment is legally sustainable when all bank details were… Read More »
Section 263 Revision Remanded for Verification as Assessment Order Was Based on Pre-Demerger Financial Statements Issue Whether a Section 263 revision order passed to set aside an assessment based on pre-demerger financial statements is valid, and whether an assessee is legally required to file a fresh revised return based on audited post-demerger accounts following an… Read More »
Section 56(2)(x) Addition and Consequential Section 270A Penalty Invalid as Property Registration Was Mere Formalization Issue Whether Section 56(2)(x)(b) can be invoked to tax the difference between stamp duty value and consideration when a registration in the relevant year merely formalizes an agreement executed, fully paid for, and possessed nearly two decades earlier. Whether penalty… Read More »
Deduction for Encumbrance Clearance Payment Allowed as AO Conducted Enquiry and PCIT Revision Unjustified Issue Whether the PCIT was justified in invoking Section 263 revisionary powers when the Assessing Officer (AO) had conducted inquiries, applied his mind, and taken a plausible view allowing a deduction under Section 48 for clearing a property encumbrance. Whether the… Read More »
Exemption Under Section 10(26AAB) Cannot Be Denied to Market Committee Due to Wrong Claim in Return Issue Whether an Agricultural Produce Market Committee legally entitled to exemption under Section 10(26AAB) can be denied the benefit merely because it inadvertently claimed exemption under Section 10(23C) in its return, and whether such mistake can be rectified under… Read More »
Compensation Received by BSNL Employees Under Voluntary Retirement Scheme 2019 Is Exempt Under Section 10(10B) Issue Whether compensation received by BSNL employees under the BSNL Voluntary Retirement Scheme, 2019 qualifies as retrenchment compensation and is exempt from income tax under Section 10(10B) of the Income-tax Act, 1961. Facts The assessees were employees of Bharat Sanchar… Read More »
Reversal of Bad Debt Provision and Overdue NPA Interest Held Non-Taxable, Rule 6ABA Remanded for Re-examination Issue Whether the release/reversal of an NPA provision transferred to the Profit & Loss account can be taxed under Section 41(1) as a remission or cessation of trading liability. Whether deduction under Section 36(1)(viia) read with Rule 6ABA is… Read More »