Daily Archives: September 2, 2026

Statutory Refund Adjustment Priority Requires Clearing Accrued Section 244A Interest Before Appropriating Principal Tax

By | September 2, 2026
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Statutory Refund Adjustment Priority Requires Clearing Accrued Section 244A Interest Before Appropriating Principal Tax Issue Whether the Revenue is required to adjust the interest component first before appropriating the principal tax amount while crediting a refund to the assessee under Section 244A of the Income-tax Act, 1961 (Section 437 of the Income-tax Act, 2025). Facts… Read More »

Reassessment Under Section 148 Is Invalid Post Section 132A Requisition When Section 153A Limitation Expires

By | September 2, 2026
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Reassessment Under Section 148 Is Invalid Post Section 132A Requisition When Section 153A Limitation Expires Issue Whether, in a case where cash is requisitioned under Section 132A, the Assessing Officer can initiate reassessment proceedings under Section 148 read with Section 148A after failing to initiate search assessment proceedings under Section 153A within the prescribed limitation… Read More »

Reassessment Beyond Four Years Without Addition On Recorded Reasons Is Invalid And Lacks Jurisdiction

By | September 2, 2026
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Reassessment Beyond Four Years Without Addition On Recorded Reasons Is Invalid And Lacks Jurisdiction Issue Whether reassessment proceedings initiated beyond four years from the end of the relevant assessment year are valid when the Assessing Officer makes no additions in respect of the reasons recorded for reopening, particularly in light of Explanation 3 to Section… Read More »

NaFAC and JAO hold valid jurisdiction for faceless reassessments, but natural justice demands remanding ex-parte additions due to assessee’s mental illness.

By | September 2, 2026
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NaFAC and JAO hold valid jurisdiction for faceless reassessments, but natural justice demands remanding ex-parte additions due to assessee’s mental illness. Issue Whether National Faceless Assessment Centre (NaFAC) and Jurisdiction Assessment Officer (JAO) possess valid jurisdiction under Section 144B and Section 151A read with CBDT circulars/notifications to conduct faceless reassessment proceedings under Section 147 of… Read More »

MEIS export scheme benefits offset operational costs and are taxable as revenue receipts under Section 2(24)(xviii).

By | September 2, 2026
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MEIS export scheme benefits offset operational costs and are taxable as revenue receipts under Section 2(24)(xviii). Issue Whether benefits/rewards received by an assessee under the Merchandise Exports from India Scheme (MEIS) of the Foreign Trade Policy 2015 constitute capital receipts or taxable revenue receipts in light of the purpose test and the insertion of Section… Read More »

Unexplained investment under Section 69 must be assessed in the financial year when payments were actually made, not when registered deed is executed.

By | September 2, 2026
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Unexplained investment under Section 69 must be assessed in the financial year when payments were actually made, not when registered deed is executed. Unexplained investment under Section 69 must be assessed in the financial year when payments were actually made, not when registered deed is executed. Issue Whether an unexplained investment under Section 69 of… Read More »

Exemption under Section 54F is allowable on both purchase and post-purchase reconstruction expenses incurred to make a house habitable.

By | September 2, 2026
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Exemption under Section 54F is allowable on both purchase and post-purchase reconstruction expenses incurred to make a house habitable. Issue Whether capital gains exemption under Section 54F of the Income-tax Act, 1961 (corresponding to Section 86 of the Income-tax Act, 2025) extends to post-purchase construction, renovation, and demolition expenses incurred to make a residential house… Read More »

Exemption under Section 54/54F is denied when a new residential property is purchased in the wife’s name.

By | September 2, 2026
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Exemption under Section 54/54F is denied when a new residential property is purchased in the wife’s name. Issue Whether an assessee who sells a residential house can claim capital gains exemption under Section 54 or Section 54F of the Income-tax Act, 1961 (corresponding to Sections 82 and 86 of the Income-tax Act, 2025) when the… Read More »

Project Expenses Incurred Wholly for Business Are Deductible Under Section 37(1) Absent Corresponding Income

By | September 2, 2026
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Project Expenses Incurred Wholly for Business Are Deductible Under Section 37(1) Absent Corresponding Income Issue Whether project expenses incurred wholly and exclusively for business purposes can be disallowed under Section 37(1) solely because no corresponding income was recognized or booked against those projects in the relevant assessment year. Facts The assessee is a company engaged… Read More »

Depreciation Claimed on Non-Compete Fees Is Unsustainable, But Goodwill Arising from Slump Sale Qualifies for Depreciation

By | September 2, 2026
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Depreciation Claimed on Non-Compete Fees Is Unsustainable, But Goodwill Arising from Slump Sale Qualifies for Depreciation Issue Whether depreciation can be claimed under Section 32 on non-compete fees recognized during a slump sale, or if it must be treated strictly as revenue expenditure under Section 37(1). Whether sixth proviso to Section 32(1), Explanation 7 to… Read More »