NFAC Order Set Aside and Restored for Virtual Hearing, Quashing Consequential Penalty Orders Issue Whether the passing of an appellate order under Section 250 of the Income-tax Act, 1961 by the CIT(A) (NFAC) without granting a requested virtual hearing/video conference link violates the principles of natural justice, and whether the consequent penalty orders passed under… Read More »
Employer’s Failure to Deduct TDS on Overseas LTC Renders It an Assessee-in-Default Under Section 201 Issue Whether an employer who reimburses Leave Travel Concession (LTC) to its employees for travel involving a foreign leg without deducting tax at source can be treated as an assessee-in-default under Sections 201(1) and 201(1A) of the Income-tax Act, 1961… Read More »
Reassessment notice and proceedings against a deceased person are invalid when the legal representative promptly objects to jurisdiction. Issue Whether reassessment proceedings initiated under Section 148 against a deceased assessee—and subsequent notices or orders passed thereunder—can be sustained under Section 159 of the Income-tax Act, 1961 / Section 302 of the Income-tax Act, 2025 when… Read More »
Reassessment notice issued beyond six years without w.e.f. 01.04.2023 Finance Act provisos is time-barred Reassessment notice issued beyond six years without w.e.f. 01.04.2023 Finance Act provisos is time-barred Issue Whether a reassessment notice issued under Section 148 on 07.04.2022 for Assessment Year 2015–16 is barred by limitation when the provisos to Section 149(1) inserted by… Read More »
CBDT Instruction No. 01/2022 and Section 148 notice for AY 2015-16 issued within TOLA limitation are valid. Issue Whether CBDT Instruction No. 01/2022, issued to implement the Supreme Court judgment in Union of India v. Ashish Agarwal, is legally valid. Whether an order under Section 148A(d) and a reassessment notice under Section 148 issued on… Read More »
Reopening notice issued beyond the surviving limitation period under TOLA and Ashish Agarwal directives is invalid. Reopening notice issued beyond the surviving limitation period under TOLA and Ashish Agarwal directives is invalid. Issue Whether a reassessment notice issued under Section 148 on 20.08.2022 for Assessment Year 2014–15 is time-barred and invalid for being issued beyond… Read More »
Notional interest cannot be taxed under mercantile system when debt recovery is improbable due to financial distress. Issue Whether notional interest can be added to the income of an assessee following the mercantile system of accounting on outstanding balances recoverable from debtor concerns whose financial position has severely deteriorated. Facts Accounting Method: The assessee-firm followed… Read More »
Revaluation of existing leasehold rights without cash inflow or new asset acquisition cannot be taxed under Section 69. Issue Whether the revaluation of an existing tenancy/leasehold right by a firm, without acquiring any new asset, paying consideration, or introducing funds, can be treated as an unexplained investment under Section 69 of the Income-tax Act, 1961… Read More »
Capital contribution received from newly inducted partner via demand drafts cannot be taxed under Section 68. Issue Whether an addition made under Section 68 of the Income-tax Act, 1961 / Section 102 of the Income-tax Act, 2025 as an unexplained cash credit is sustainable when a partner’s capital contribution is received through demand drafts and… Read More »
An allotment letter constitutes an agreement under Section 56(2)(x) proviso if consideration was fixed and paid via banking channels. Issue Whether an unregistered allotment letter can constitute an “agreement fixing the amount of consideration” under the first proviso to Section 56(2)(x) of the Income-tax Act, 1961 / Section 92 of the Income-tax Act, 2025, thereby… Read More »