| Section 147 / 149 |
Sapphire Foods India Ltd. v. ACIT |
[Audit Objection Shield] Reopening based solely on Audit Party objections regarding previously disclosed expenses amounts to an impermissible “change of opinion.” Notice held time-barred as extended 6-year limit cannot apply to concluded assessments with full disclosure. |
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| Section 148 / 144B |
ITO v. Vandana Malhotra |
[Landmark SC Ruling] Reassessment notices issued manually by a Jurisdictional AO (JAO) instead of the National Faceless Assessment Centre (NFAC) are contrary to the Faceless Assessment Scheme and were set aside. |
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| Section 145 / 45 |
Milan Theatres (P.) Ltd. v. DCIT |
[Accounting Consistency] Once conversion of an asset into stock-in-trade is accepted, FMV must be applied consistently to all units. Consistently followed “Project Completion Method” cannot be rejected without recording specific dissatisfaction u/s 145(3). |
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| Section 24(b) |
Shantilal G. Muttha v. ACIT |
[Let-out Property Relief] The ₹2 Lakh interest cap restriction (proviso to s. 24(b)) applies only to self-occupied property. For let-out properties, reopening based on “lack of lender’s certificate” for interest is invalid. |
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| Section 37(1) |
Zuari Management Services Ltd. |
[Commencement of Business] Statutory commencement (Certificate under Companies Act) suffices to claim revenue expenditure. Audit fees and commencement expenses are allowable even before actual operational revenue begins. |
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| Section 149(1)(b) |
Akshay Deepak Talim v. ITO |
[NRI Limitation] Reopening after 3 years is barred if the unexplained investment (net of documented housing loans) falls below the ₹50 Lakh threshold. Restricting the addition to a lower amount proves the extended period was inapplicable. |
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| Section 50C / 54F |
Kishore Anand Shetty v. ACIT |
[Revised Stamp Value] If a Supplementary Deed rectifies an original erroneous stamp valuation (e.g., excluding an approach road), the AO must adopt the revised value. Exemption u/s 54F stands if possession of a flat is received within 2 years. |
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| Section 56 |
Mange Ram v. PCIT |
[Land Compensation] Interest u/s 28 of the Land Acquisition Act retains its capital character and is a non-taxable Capital Receipt, notwithstanding the 2009 Finance Act amendment. |
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| Section 68 |
Express Tradelink (P.) Ltd. |
[Onus Discharged] Where assessee furnished PAN and banking trails for share capital, the AO cannot disregard audited balance sheets as “paper compliance” without contrary evidence. Personal appearance of directors is not a substitute for documented traceability. |
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| Section 12AB / 80G |
Arulcheyal Kainkarrya Sabha |
[Procedural Leniency] Rejection of registration for trust solely due to a delay in furnishing activity details is unsustainable; assessee must be given a fresh opportunity to submit documents on merits. |
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