INCOME TAX CASE LAWS 03.09.2026 Relevant Act Section Case Law Title Citation Brief Summary Prohibition of Benami Property Transactions Act, 1988 Section 2(9) Alishan Complex (P.) Ltd. v. Initiating Officer Click Here Retracted statement of a CA recorded during search without cross-examination could not be relied upon to allege benami cash routing where pre-existing reserves… Read More »
Deletion of Section 271(1)(c) Penalty Upheld as Interest Disallowance Under Section 36(1)(iii) Was Debatable Issue Whether the Income Tax Appellate Tribunal (ITAT) was justified in deleting the penalty levied under Section 271(1)(c) of the Income-tax Act, 1961, which was imposed following the disallowance of interest on Secured Premium Notes under Section 36(1)(iii), given that the… Read More »
Assessee’s Disclosed Receipts Settled Under MAP Cannot Attract Section 270A Penalty for Under-Reporting Income Issue Whether a penalty under Section 270A of the Income-tax Act, 1961 for under-reporting of income is sustainable when the assessee fully disclosed all material facts regarding its receipts, but the revenue taxability was subsequently agreed upon under the Mutual Agreement… Read More »
No TDS obligation triggers on estimated year-end provisions reversed next year without identified payees, nor under Section 201 if expenditure is disallowed under Section 40(a)(ia). Issue Whether an assessee can be treated as an “assessee-in-default” under Section 201(1) for non-deduction of TDS on temporary, estimated year-end provisions that lack identified payees and are reversed in… Read More »
Reassessment proceedings initiated after April 1, 2021 for AY 2015-16 are barred by limitation. Reassessment proceedings initiated after April 1, 2021 for AY 2015-16 are barred by limitation. Issue Whether reassessment proceedings initiated after April 1, 2021, for Assessment Year 2015-16—including notices issued under Section 148 and Section 148A(b) along with the consequential order—are barred… Read More »
Reopening notice under Section 148 issued against a deceased assessee is void ab initio. Issue Whether a reassessment notice issued under Section 148 in the name of a deceased assessee is legally valid and whether Section 159 can cure the jurisdictional defect to hold the legal representative responsible. Facts For Assessment Year 2012-13, the Assessing… Read More »
Ad-hoc expense disallowances remanded for fresh verification while provision for bad debts allowed. Issue Whether ad-hoc 10% disallowance of promotional expenses, disallowance of bad debts provision, unserved Section 143 intimation-based income enhancements, and consequential interest and penalty levies under Section 234A/270A are legally sustainable. Facts Ad-Hoc Expense Disallowance: The Assessing Officer (AO) made an ad-hoc… Read More »
Judicial review of Look Out Circular is limited unless the decision relies on speculative material. Issue Whether a Look Out Circular (LOC) issued by the Income-tax Department against a director based on alleged undisclosed foreign assets and financial irregularities can be quashed through judicial review under the 2017 Office Memorandum. Facts The assessee, a director… Read More »
Tax under Section 115BBI cannot be levied on a reporting error without underlying specified income. Tax under Section 115BBI cannot be levied on a reporting error without underlying specified income. Issue Whether an arithmetic mismatch or reporting oversight in filing tax return schedules empowers the Revenue to levy tax under Section 115BBI via Section 143(1)… Read More »
Foreign Assets of Small Taxpayers- Disclosure Scheme Rules 2026. Foreign Assets of Small Taxpayers- Disclosure Scheme Rules 2026. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 14th August, 2026 INCOME-TAX G.S.R. 732(E).— In exercise of the powers conferred by section 143 of the Finance Act, 2026 (4 of… Read More »