Monthly Archives: October 2026

Assessee Bank Cannot Be Assessee-in-Default for Non-Deduction of TDS on LFC Governed by High Court’s Interim Stay

By | October 3, 2026
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Assessee Bank Cannot Be Assessee-in-Default for Non-Deduction of TDS on LFC Governed by High Court’s Interim Stay Issue Whether an employer-bank can be treated as an assessee-in-default under Section 201(1)/201(1A) for failing to deduct tax at source under Section 192 on Leave Fare Concession (LFC) reimbursements involving foreign travel, when non-deduction was made in compliance… Read More »

Individual Beneficiary Cannot Claim Trust Loss Without Prior Determination and Verification of Income or Loss in Hands of Trust

By | October 3, 2026
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Individual Beneficiary Cannot Claim Trust Loss Without Prior Determination and Verification of Income or Loss in Hands of Trust Issue Whether an individual beneficiary holding a determinate share in a private family trust can directly claim a proportionate share of the trust’s loss in his individual return when the trust itself has not filed a… Read More »

Establishing Ownership Alone Does Not Warrant Seizure Release Pending Possession Assessment, But Third Parties Can Apply Under Section 132B

By | October 3, 2026
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Establishing Ownership Alone Does Not Warrant Seizure Release Pending Possession Assessment, But Third Parties Can Apply Under Section 132B Issue Whether cash seized during a search on an Angadiya firm can be released under Section 132B to a third-party owner before completion of the Angadiya firm’s assessment, and whether a third-party claimant qualifies as a… Read More »

Commissioner (Appeals) Powers Coterminous with AO; Matter Remanded for De Novo Adjudication of Purchase Discrepancies

By | October 3, 2026
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Commissioner (Appeals) Powers Coterminous with AO; Matter Remanded for De Novo Adjudication of Purchase Discrepancies Commissioner (Appeals) Powers Coterminous with AO; Matter Remanded for De Novo Adjudication of Purchase Discrepancies Issue Whether the Commissioner (Appeals) erred in rejecting fresh evidence produced by the assessee regarding discrepancies in purchases and TDS without exercising coterminous powers, justifying… Read More »

Reassessment Notice Issued to Amalgamating Company Is Void Once Same Income Is Taxed in Amalgamated Company’s Hands

By | October 3, 2026
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Reassessment Notice Issued to Amalgamating Company Is Void Once Same Income Is Taxed in Amalgamated Company’s Hands Reassessment Notice Issued to Amalgamating Company Is Void Once Same Income Is Taxed in Amalgamated Company’s Hands Issue Whether reassessment proceedings initiated under Section 148 against a non-existent amalgamating company can survive when the exact same subject matter… Read More »

Reassessment Initiated on Surmises and Conjectures Regarding Cessation of Liability Is Legally Impermissible

By | October 3, 2026
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Reassessment Initiated on Surmises and Conjectures Regarding Cessation of Liability Is Legally Impermissible Issue Whether reassessment proceedings under Section 148 read with Section 148A can be validly initiated based on vague assumptions and conjectures that an assessee “might have claimed” deduction of interest liability which subsequently ceased to exist. Facts The petitioner-company underwent Corporate Insolvency… Read More »

Expenditure for Business Closure Is Disallowed Under Section 37(1), While Foreign Exchange Loss Cannot Be Estimated

By | October 3, 2026
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Expenditure for Business Closure Is Disallowed Under Section 37(1), While Foreign Exchange Loss Cannot Be Estimated Issue Whether payments made for the closure of a business division are allowable under Section 37(1), and whether foreign exchange fluctuation losses can be disallowed on an estimated basis when actual data is available. Facts The assessee (a telecom… Read More »

Revisional Order Passed Without Valid Jurisdiction and on Properties Used for Profession Is Void

By | October 3, 2026
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Revisional Order Passed Without Valid Jurisdiction and on Properties Used for Profession Is Void Issue Whether a revisional order passed under Section 263 is legally valid when the show-cause notice was issued by an officer lacking valid PCIT jurisdiction, and where the Assessing Officer had already made inquiries accepting that the subject properties were used… Read More »

Intimation Under Section 143(1) Passed After Issuing Section 143(2) Scrutiny Notice Is Legally Void

By | October 3, 2026
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Intimation Under Section 143(1) Passed After Issuing Section 143(2) Scrutiny Notice Is Legally Void Issue Whether an intimation passed under Section 143(1) of the Income-tax Act, 1961 after the issuance of a scrutiny notice under Section 143(2) is legally void, rendering the subsequent assessment order under Section 143(3) that relies on it invalid. Facts The… Read More »

Absence of Possession and Compliance Under Transfer of Property Act Prevails, Negating Capital Gains Tax Liability

By | October 3, 2026
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Absence of Possession and Compliance Under Transfer of Property Act Prevails, Negating Capital Gains Tax Liability Absence of Possession and Compliance Under Transfer of Property Act Prevails, Negating Capital Gains Tax Liability Issue Whether the execution of a Joint Development Agreement (JDA) constitutes a “transfer” of a capital asset under Section 2(47) of the Income-tax… Read More »