Monthly Archives: October 2026

Mechanical grant of Section 153D approval without application of mind invalidates search assessment orders

By | October 13, 2026
0 Comment

Mechanical grant of Section 153D approval without application of mind invalidates search assessment orders Issue Whether the grant of prior approval under Section 153D of the Income-tax Act, 1961 in a mechanical manner—without perusal of draft orders or serious application of mind—renders the approval invalid and vitiates the consequent assessment orders passed under Section 153A.… Read More »

Failure to pass fresh assessment order within statutory limitation period invalidates demand and validates returned income

By | October 13, 2026
0 Comment

Failure to pass fresh assessment order within statutory limitation period invalidates demand and validates returned income Issue Whether the failure of the Assessing Officer to pass a fresh assessment order pursuant to a Tribunal remand within the extended limitation period prescribed under Section 153(3) read with Section 153(4) bars any demand from being raised and… Read More »

Reassessment notice issued beyond limitation without unrecorded income revelation and on taxed demerged business income is invalid

By | October 13, 2026
0 Comment

Reassessment notice issued beyond limitation without unrecorded income revelation and on taxed demerged business income is invalid Issue Whether information on the Insight portal regarding transactions already disclosed and taxed in the hands of a resulting post-demerger company constitutes valid “information” indicating income escapement under Section 148. Whether passing an order under Section 148A(d) for… Read More »

Reassessment notice issued by an Assessing Officer lacking PAN jurisdiction is void, and CBDT guidelines cannot override statutory jurisdiction.

By | October 13, 2026
0 Comment

Reassessment notice issued by an Assessing Officer lacking PAN jurisdiction is void, and CBDT guidelines cannot override statutory jurisdiction. Issue Whether a reassessment notice issued under Section 148 by an Assessing Officer lacking jurisdiction as per PAN assignment is void ab initio, and whether CBDT Instruction No. 1/2011 can override statutory jurisdiction under Section 120.… Read More »

When sales are accepted and books unrejected, purchases cannot be disbelieved under Section 69C

By | October 13, 2026
0 Comment

When sales are accepted and books unrejected, purchases cannot be disbelieved under Section 69C Issue Whether purchases can be treated as non-genuine/sham and added as unexplained expenditure under Section 69C read with Section 115BBE when the corresponding sales have been accepted by the Revenue and the books of account have not been rejected under Section… Read More »

Unexplained money addition under Section 69A is invalid based on prior search material and retracted uncorroborated statement

By | October 13, 2026
0 Comment

Unexplained money addition under Section 69A is invalid based on prior search material and retracted uncorroborated statement Issue Whether an addition under Section 69A towards cash used for advancing loans and interest earned as unexplained money can be sustained when it relies on search material predating the relevant financial year and a survey statement that… Read More »

Business commission received in cash and capital introduced from business cash flows cannot be taxed as unexplained cash credits under Section 68

By | October 13, 2026
0 Comment

Business commission received in cash and capital introduced from business cash flows cannot be taxed as unexplained cash credits under Section 68 Issue Whether business commission income received in cash, once accepted and identified as business receipts, can be simultaneously characterized and taxed as an unexplained cash credit under Section 68 read with Section 115BBE.… Read More »

Deletion of unexplained cash credit and bogus trading liability additions based on additional evidence involves purely factual findings, raising no substantial question of law

By | October 13, 2026
0 Comment

Deletion of unexplained cash credit and bogus trading liability additions based on additional evidence involves purely factual findings, raising no substantial question of law Issue Whether any substantial question of law arises under Section 260A against an ITAT order deleting/restricting additions made under Section 68 (unexplained cash credits/accommodation entries) and bogus trading liabilities when the… Read More »

Goodwill qualifies as a depreciable intangible asset and Revenue cannot raise unpleaded issues before High Court

By | October 13, 2026
0 Comment

Goodwill qualifies as a depreciable intangible asset and Revenue cannot raise unpleaded issues before High Court Issue Whether goodwill is an intangible asset eligible for depreciation under Section 32 of the Income-tax Act, 1961. Whether the Revenue can raise a new issue before the High Court that was never raised before the Commissioner (Appeals) or… Read More »

Power generation qualifies as production, entitling manufacturers to additional depreciation under Section 32(1)(iia)

By | October 13, 2026
0 Comment

Power generation qualifies as production, entitling manufacturers to additional depreciation under Section 32(1)(iia) Issue Whether power generation comes within the scope of “production” under Section 32(1)(iia) of the Income-tax Act, 1961 to qualify for additional depreciation on new plant and machinery installed at a Captive Power Plant (CPP) and Wind Power Plant (WPP). Whether an… Read More »