Prosecution for Delayed Tax Payment Unreasonable Without Mens Rea When Full Liability with Interest Is Settled Prosecution for Delayed Tax Payment Unreasonable Without Mens Rea When Full Liability with Interest Is Settled Issue Whether criminal prosecution under Section 276C(2) for willful attempt to evade tax can be sustained when an assessee merely delays payment… Read More »
Compliance with High Court Stay Negates Assessee in Default Status and Interest for Non-Deduction of TDS on Foreign Travel LTC Issue Whether an employer-deductor can be treated as an “assessee in default” under Section 201(1) and charged interest under Section 201(1A) for non-deduction of tax at source under Section 192 on Leave Travel Concession/Leave Fair… Read More »
SBI Not Assessee in Default Under Section 201 for Non-Deduction of TDS on Overseas LTC Reimbursements Governed by High Court Stay SBI Not Assessee in Default Under Section 201 for Non-Deduction of TDS on Overseas LTC Reimbursements Governed by High Court Stay Issue Whether an employer bank can be treated as an assessee in default… Read More »
Reassessment Notice Issued Under Sanction of Principal Commissioner Instead of Specified Joint Commissioner Is Void Issue Whether a Section 148 reassessment notice issued for AY 2015-16 under the extended TOLA timeline is invalid if statutory approval was obtained from the Principal Commissioner instead of the specified Joint Commissioner under Section 151(2). Facts Assessee was issued… Read More »
Reopening Notice Under Sanction of Principal Commissioner Instead of Specified Joint Commissioner Under Section 151(2) Is Void Reopening Notice Under Sanction of Principal Commissioner Instead of Specified Joint Commissioner Under Section 151(2) Is Void Issue Whether a reassessment notice issued under Section 148 for AY 2015-16, deemed to be within four years under Section 3… Read More »
Only Embedded Profit Counts for Extended Reassessment Limits, Rendering Third-Party Reassessment Invalid Without Cross-Examination Issue Whether reassessment notices issued under Section 148 beyond the three-year limit based on third-party seized data (“Sanjeev Tally”) are valid when the estimated escaped income (embedded profit element) is below Rs. 50 lakhs per assessment year. Whether third-party digital records… Read More »
Customary household savings, gifts, and past family cash inflows explain cash found during search, invalidating Section 69A addition. Issue Whether cash of Rs. 8.87 lakhs attributed to a senior citizen mother and minor children can be added as unexplained money under Section 69A when supported by customary household savings, traditional gifts, and documented past cash… Read More »
Repayment of unsecured loans prior to assessment completion proves genuineness, rendering Section 68 addition and interest disallowance unsustainable. Issue Whether an addition under Section 68 toward unexplained cash credits and consequential interest disallowance can be sustained when the unsecured loans received from lenders were fully repaid prior to the completion of the assessment. Facts Assessee,… Read More »
Pr. CIT cannot invoke Section 263 revision without conducting independent enquiry or proving assessment order erroneous. Issue Whether a revision order passed under Section 263 by the Pr. CIT can be sustained when the Assessing Officer (AO) had already verified the issues during assessment and the Pr. CIT failed to conduct an independent enquiry or… Read More »
Provision for discount created using a scientific method and fully discharged in subsequent years is allowable business expenditure. Provision for discount created using a scientific method and fully discharged in subsequent years is allowable business expenditure. Issue Whether a provision for discount created on a scientific basis and subsequently fully discharged constitutes an allowable business… Read More »