Daily Archives: August 19, 2026

Penalty Under Section 271(1)(c) Inapplicable Where Prepaid Tax Exceeds Assessed Tax In Reassessment Proceedings

By | August 19, 2026
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Penalty Under Section 271(1)(c) Inapplicable Where Prepaid Tax Exceeds Assessed Tax In Reassessment Proceedings Penalty Under Section 271(1)(c) Inapplicable Where Prepaid Tax Exceeds Assessed Tax In Reassessment Proceedings Issue Whether a penalty for concealment of income under Section 271(1)(c) read with Explanation 3 and Explanation 4(c) can be levied when the tax deducted at source… Read More »

Penalty Under Section 270A Unreasonable Where Income Subject To TDS Disclosed Under Section 148 Return

By | August 19, 2026
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Penalty Under Section 270A Unreasonable Where Income Subject To TDS Disclosed Under Section 148 Return Issue Whether penalty for under-reporting or misreporting under Section 270A is sustainable when a salaried taxpayer, acting under a bona fide belief, discloses her entire income (subject to TDS except a small bank interest amount) in response to a Section… Read More »

Four-Year Delay In Recording Satisfaction Note Invaluates Search Proceedings Under Section 153C

By | August 19, 2026
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Four-Year Delay In Recording Satisfaction Note Invaluates Search Proceedings Under Section 153C Four-Year Delay In Recording Satisfaction Note Invaluates Search Proceedings Under Section 153C Issue Whether initiation of search assessment proceedings under Section 153C against a third party is legally sustainable when there is an unexplained delay of over four years between the search execution… Read More »

Retrospective Insertion Of Section 147A Validates Jurisdiction Of JAO To Initiate And Conduct Reassessment Proceedings

By | August 19, 2026
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Retrospective Insertion Of Section 147A Validates Jurisdiction Of JAO To Initiate And Conduct Reassessment Proceedings Retrospective Insertion Of Section 147A Validates Jurisdiction Of JAO To Initiate And Conduct Reassessment Proceedings Issue Whether, in view of the retrospective insertion of Section 147A by the Finance Act, 2026 with effect from April 1, 2021, the Jurisdictional Assessing… Read More »

Technical Glitch In Delay Filing Form 10-IC Entitles Domestic Company To Concessional Tax Rate Under Section 115BAA

By | August 19, 2026
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Technical Glitch In Delay Filing Form 10-IC Entitles Domestic Company To Concessional Tax Rate Under Section 115BAA Issue Whether a domestic company is entitled to the concessional rate of tax under Section 115BAA when Form 10-IC and the return of income were filed after the due date due to technical glitches on the e-filing portal,… Read More »

SLP Dismissed As Reassessment Cannot Be Initiated Based Solely On Bank Debit-Credit Entries Without Evidence Of Escaped Income

By | August 19, 2026
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SLP Dismissed As Reassessment Cannot Be Initiated Based Solely On Bank Debit-Credit Entries Without Evidence Of Escaped Income Issue Whether reassessment under Section 148 read with Section 148A can be sustained when initiated solely on high-value bank debit and credit entries, despite the assessee explaining all banking transactions with complete documentary evidence and no cash… Read More »

Reassessment Cannot Be Initiated On Mere Suspicion Without Information Indicating Escapement Of Recorded Business Income

By | August 19, 2026
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Reassessment Cannot Be Initiated On Mere Suspicion Without Information Indicating Escapement Of Recorded Business Income Reassessment Cannot Be Initiated On Mere Suspicion Without Information Indicating Escapement Of Recorded Business Income Issue Whether reassessment under Section 148 can be initiated on the basis of a Suspicious Transaction Report (STR) flagging high-value transactions, when all transactions are… Read More »

Notice Under Section 143(2) Is Not Mandatory In Reassessment Proceedings As Section 147/148 Forms A Separate Code

By | August 19, 2026
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Notice Under Section 143(2) Is Not Mandatory In Reassessment Proceedings As Section 147/148 Forms A Separate Code Issue Whether non-issuance and non-service of a notice under Section 143(2) during reassessment proceedings under Sections 147/148 invalidates the reassessment order, or whether Section 147/148 acts as a separate code for assessing escaped income where a Section 143(2)… Read More »

Fair Market Value Of JDA Built-Up Area Determines Consideration; Disallowance Of Interest Expenditure Is Impermissible With Sufficient Interest-Free Funds

By | August 19, 2026
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Fair Market Value Of JDA Built-Up Area Determines Consideration; Disallowance Of Interest Expenditure Is Impermissible With Sufficient Interest-Free Funds Issue Whether, for computing business income under a Joint Development Agreement (JDA) where land converted into stock-in-trade is exchanged for constructed area, the “full value of consideration” is to be determined based on the Fair Market… Read More »

Cooperative Society Entitled To Section 80P Deduction And Full Additional Depreciation On Milk Processing Equipment

By | August 19, 2026
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Cooperative Society Entitled To Section 80P Deduction And Full Additional Depreciation On Milk Processing Equipment Issue Whether a cooperative society engaged in milk procurement is entitled to deduction under Section 80P(2)(d) on interest/dividend income earned from investments in other cooperative entities. Whether milk cans and related equipment qualify as plant and machinery eligible for additional… Read More »