Daily Archives: September 23, 2026

Reopening based solely on CBDT directions without independent Assessing Officer satisfaction is void ab initio.

By | September 23, 2026
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Reopening based solely on CBDT directions without independent Assessing Officer satisfaction is void ab initio. Issue Whether a reassessment notice issued under Section 148 is legally valid when it is based solely on a CBDT instruction directing the reopening of cases involving invalid returns, without any independent satisfaction of the Assessing Officer regarding escapement of… Read More »

Section 143(1)(a) adjustments made without prior show-cause notice are invalid and liable to be quashed.

By | September 23, 2026
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Section 143(1)(a) adjustments made without prior show-cause notice are invalid and liable to be quashed. Issue Whether an intimation issued under Section 143(1)(a) of the Income-tax Act, 1961 making statutory adjustments to a return of income is legally valid if passed without issuing a prior show-cause notice to the assessee. Facts Return of Income: For… Read More »

Staffing Companies Qualify for Section 80JJAA Deduction, but Transfer Pricing Enhancements Exclude Chapter VI-A Benefits

By | September 23, 2026
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Staffing Companies Qualify for Section 80JJAA Deduction, but Transfer Pricing Enhancements Exclude Chapter VI-A Benefits Issue Whether a manpower and staffing agency qualifies for deduction under Section 80JJAA as an employer qua deployed personnel, and whether a one-day delay in filing Form 10DA is fatal to the claim. Whether Section 80JJAA deductions spanning consecutive years… Read More »

Disallowance for Bogus Purchases from Bhanwarlal Jain Group Correctly Restricted to 6 Percent

By | September 23, 2026
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Disallowance for Bogus Purchases from Bhanwarlal Jain Group Correctly Restricted to 6 Percent Issue Whether any substantial question of law arises against the Tribunal’s decision restricting the addition for bogus purchases from the Bhanwarlal Jain Group to 6 percent of the total non-genuine purchases. Facts Context & Period: The matter pertains to Assessment Years 2007-08… Read More »

Addition Under Section 56(2)(vii)(b) Sustained as Earlier Agreement Failed Consideration and Advance Payment Conditions

By | September 23, 2026
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Addition Under Section 56(2)(vii)(b) Sustained as Earlier Agreement Failed Consideration and Advance Payment Conditions Issue Whether a non-resident assessee is entitled to adopt the lower stamp-duty value as on the date of an earlier booking agreement rather than the date of the registered sale deed under the provisos to Section 56(2)(vii)(b), where the final consideration… Read More »

Transfer Pricing Adjustments and Bona Fide Claims Do Not Attract Penalty Under Section 271(1)(c)

By | September 23, 2026
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Transfer Pricing Adjustments and Bona Fide Claims Do Not Attract Penalty Under Section 271(1)(c) Issue Whether penalty under Section 271(1)(c) for furnishing inaccurate particulars of income can be levied on transfer pricing adjustments, disallowance of leave encashment provision, and legal expenses on capital asset transfer when all relevant facts were fully disclosed and quantum additions… Read More »

Profit From Sale of Depreciable Shop Premises Must Be Retained in Book Profit for Section 40(b) Partner Remuneration

By | September 23, 2026
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Profit From Sale of Depreciable Shop Premises Must Be Retained in Book Profit for Section 40(b) Partner Remuneration Issue Whether the profit earned from the sale of a depreciable business shop, credited to the Profit and Loss Account and assessable under Section 50 as short-term capital gains, can be excluded by the Assessing Officer when… Read More »

Absence of Written Trust Deed Cannot Bar Section 12AB Registration For Valid Charitable Institutions

By | September 23, 2026
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Absence of Written Trust Deed Cannot Bar Section 12AB Registration For Valid Charitable Institutions Absence of Written Trust Deed Cannot Bar Section 12AB Registration For Valid Charitable Institutions Issue Whether the CIT(Exemption) can reject an application for registration or renewal under Section 12AB of the Income-tax Act, 1961 solely due to the non-furnishing of a… Read More »

BSNL Voluntary Retirement Scheme 2019 Compensation Is Capital Receipt Exempt as Retrenchment Compensation Under Section 10(10B)

By | September 23, 2026
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BSNL Voluntary Retirement Scheme 2019 Compensation Is Capital Receipt Exempt as Retrenchment Compensation Under Section 10(10B) Issue Whether compensation received by BSNL employees under the BSNL Voluntary Retirement Scheme, 2019 is in the nature of retrenchment compensation exempt as a capital receipt under Section 10(10B) of the Income-tax Act, rather than voluntary retirement compensation under… Read More »

Income tax (Fifth Amendment) Rules, 2026

By | September 23, 2026
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Income tax (Fifth Amendment) Rules, 2026 Income tax (Fifth Amendment) Rules, 2026 The Gazette of India CG-DL-E-22092026-276402 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 760] NEW DELHI, TUESDAY, SEPTEMBER 22, 2026/BHADRA 31, 1948 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 22nd September, 2026 INCOME-TAX G.S.R. 830(E).— In exercise of the powers conferred by section 533 read with sections 395(4)(a) and 397(3)(a) and ofthe Income-tax Act, 2025 (30 of 2025), the Central Board of Direct Taxes hereby makes the following rules further to amend the… Read More »