Reassessment notice issued beyond three years with PCIT approval instead of specified higher authority is invalid. Issue Whether a reassessment notice issued under Section 148 after three years from the end of Assessment Year 2016-17 with the approval of the Principal Commissioner of Income-tax (PCIT) instead of the higher specified authority under Section 151(ii) is… Read More »
Second reassessment notice under Section 148 for income already assessed and taxed is illegal and invalid Issue Whether an Assessing Officer (AO) can legally issue a second notice under Section 148 of the Income-tax Act, 1961 (corresponding to Section 280 of the Income-tax Act, 2025) for a transaction that has already been assessed and brought… Read More »
Assessment order passed under section 143(3) in the name of a non-existent entity is legally invalid and liable to be quashed Issue Whether an assessment order passed under section 143(3) of the Income-tax Act, 1961 (corresponding to section 270 of the Income-tax Act, 2025) in the name of an erstwhile partnership firm—after it had ceased… Read More »
Availing KVSS for interest does not bar tax refunds from carry-forward loss, but settled tax demands cannot be reopened. Availing KVSS for interest does not bar tax refunds from carry-forward loss, but settled tax demands cannot be reopened. Issue Whether an assessee who settled disputed interest demands under the Kar Vivad Samadhan Scheme (KVSS) retains… Read More »
Addition under Section 68 for unsecured loans from financially sound entities is legally unsustainable. Issue Whether additions made under Section 68 of the Income-tax Act, 1961 (corresponding to Section 102 of the Income-tax Act, 2025) as unexplained cash credits on account of unsecured loans received by the assessee-company are legally sustainable, where the lenders established… Read More »
Disallowance of Interest and Cash Credit Addition on Partners’ Capital Held Unsustainable Due to Sufficient Interest-Free Funds and Accounting Misconception Issue Whether a disallowance under section 36(1)(iii) for notional interest on interest-free advances is sustainable when the assessee’s non-interest-bearing funds significantly exceed the advances, and the Assessing Officer fails to establish a direct nexus with… Read More »
Absence of formal trust deed cannot justify rejection of section 12AB renewal when alternative statutory evidence exists. Issue Whether the rejection of an application for renewal of registration under section 12AB (filed in Form No. 10AB under section 12A(1)(ac)(ii)) is sustainable merely due to the absence of a formal trust deed or Memorandum of Association… Read More »