Daily Archives: August 27, 2026

Exceeding Composition Threshold Automatically Lapses Option, but Post-Lapse Tax Must Be Calculated Cum-Tax

By | August 27, 2026
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Exceeding Composition Threshold Automatically Lapses Option, but Post-Lapse Tax Must Be Calculated Cum-Tax Issue Whether exceeding the aggregate turnover threshold of ₹1.50 crore automatically terminates the composition scheme option under Section 10(3) from the exact date of the breach. Whether post-lapse supplies made by a composition taxpayer who issued non-GST invoices are entitled to cum-tax… Read More »

INCOME TAX CASE LAWS 25.08.2026

By | August 27, 2026
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INCOME TAX CASE LAWS 25.08.2026   Relevant Act Section Case Law Title Citation Brief Summary Prohibition of Benami Property Transactions Act, 1988 Section 2 Om Parkash Agarwal v. Initiating Officer (DCIT/ACIT) Click Here Acquisition of substantial shares by a paper company lacking genuine operations/capital, funded via connected entities, held as a benami transaction with the… Read More »

CIT(A) cannot issue conditional remand directions without conclusively deciding penalty for bona fide error

By | August 27, 2026
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CIT(A) cannot issue conditional remand directions without conclusively deciding penalty for bona fide error Issue Whether the CIT(A)/NFAC exceeded jurisdiction under Section 251(1)(b) by issuing a conditional direction to the Assessing Officer while failing to conclusively decide if the reporting difference was a bona fide clerical error under Section 270A(6)(a). Facts Assessee made a provision… Read More »

Co-operative Banks Are Exempt From TDS Under Section 194A(3)(v) On Interest Paid To Non-Member Co-operative Societies

By | August 27, 2026
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Co-operative Banks Are Exempt From TDS Under Section 194A(3)(v) On Interest Paid To Non-Member Co-operative Societies Issue Whether a co-operative bank paying interest on fixed deposits to non-member co-operative societies is entitled to exemption from deducting tax at source (TDS) under Section 194A(3)(v). Whether the co-operative bank can be treated as an “assessee-in-default” under Section… Read More »

Revenue must lead positive evidence to establish disputed transactions before shifting burden onto assessee

By | August 27, 2026
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Revenue must lead positive evidence to establish disputed transactions before shifting burden onto assessee Issue Whether reassessment proceedings under Section 148 should be dropped at the initial stage when an assessee pleads identity theft and denies involvement in high-value transactions. Whether the burden of proof rests on the Revenue to establish through positive evidence that… Read More »

Failure to decide reopening objections by speaking order invalidates reassessment but warrants remand, not quashing.

By | August 27, 2026
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Failure to decide reopening objections by speaking order invalidates reassessment but warrants remand, not quashing. Issue Whether the Assessing Officer’s failure to dispose of the assessee’s objections against a Section 148 reopening notice by a separate speaking order before completing the reassessment renders the entire reassessment proceeding a complete nullity liable to be quashed, or… Read More »

Transfer pricing adjustment remanded for fresh evidence verification, while MAT addition on unexpired risks reserve is deleted.

By | August 27, 2026
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Transfer pricing adjustment remanded for fresh evidence verification, while MAT addition on unexpired risks reserve is deleted.   Transfer pricing adjustment remanded for fresh evidence verification, while MAT addition on unexpired risks reserve is deleted. Issue Whether transfer pricing adjustment determining ALP as NIL for intra-group services should be remanded to the AO/TPO to verify… Read More »

Reopening assessment on interest from co-operative banks constitutes impermissible change of opinion and is unsustainable.

By | August 27, 2026
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Reopening assessment on interest from co-operative banks constitutes impermissible change of opinion and is unsustainable. Issue Whether reopening an assessment under Section 148 based on the same material examined during scrutiny to disallow Section 80P(2)(d) deduction constitutes an invalid change of opinion. Whether interest income earned by a co-operative society from investments in co-operative banks… Read More »

Reassessment Initiated Solely Based on Audit Party Objections Without New Facts Is Invalid Change of Opinion

By | August 27, 2026
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Reassessment Initiated Solely Based on Audit Party Objections Without New Facts Is Invalid Change of Opinion Reassessment Initiated Solely Based on Audit Party Objections Without New Facts Is Invalid Change of Opinion Issue Whether reopening of assessment under Section 147 after four years based solely on an audit party objection, without any new tangible material… Read More »

Lack of formal trust deed cannot justify refusing Section 12AB registration when genuine charitable activities exist

By | August 27, 2026
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Lack of formal trust deed cannot justify refusing Section 12AB registration when genuine charitable activities exist Lack of formal trust deed cannot justify refusing Section 12AB registration when genuine charitable activities exist Issue Whether the absence of a formal trust deed constitutes a valid ground for refusing renewal of registration under Section 12AB and approval… Read More »