Renewal under Sections 12AB and 80G Cannot Be Rejected Based on Pre-2021 Search Materials Issue Whether the Principal Commissioner can reject an application for renewal of registration under Section 12AB and approval under Section 80G by relying on past search/investigation materials prior to 01-04-2021, rather than confining the enquiry to the activities and compliance of… Read More »
CBDT initiates verification drive against individuals/entities claiming fake deductions in ITR PRESS RELEASE, DATED 14-7-2025 The Income Tax Department initiated a large-scale verification operation across multiple locations in the country on 14th July 2025, targeting individuals and entities facilitating fraudulent claims of deductions and exemptions in Income Tax Returns (ITRs). This action follows a detailed analysis… Read More »
INCOME TAX CASE LAW 16.07.2025 Section Case Law Title / Item Brief Summary Citation Relevant Act N/A (Press Release) CBDT Verification Drive on Fake Deductions The Income-tax Department launched a nationwide verification drive against individuals, entities, and intermediaries making fraudulent deduction and exemption claims in ITRs. Click here Income-tax Act, 1961 Section 10(46) Notification of… Read More »
Addition of Entire Unaccounted Stock Sales Upheld; Penalty Under Section 271(1)(c) Sustained as GP Rate Inapplicable Addition of Entire Unaccounted Stock Sales Upheld; Penalty Under Section 271(1)(c) Sustained as GP Rate Inapplicable Issue Whether the addition of the entire value of unaccounted sales (uncovered during an Excise survey) was justified when raw material costs were… Read More »
Rejection of Delay Condonation Quashed as Will Executor Covered as Legal Representative Under Section 159 Issue Whether the executor of a deceased assessee’s will qualifies as a “legal representative” under Section 159 of the Income-tax Act, 1961, and whether the Chief Commissioner erred in refusing to condone the delay in filing the tax return for… Read More »
Assessment Order and Demand Quashed as Denial of Opportunity Created Jurisdictional Infirmity Warranting Writ Remedy Issue Whether a writ petition under Article 226 of the Constitution of India is maintainable against an assessment order passed with fundamental procedural defects and denial of a fair opportunity of hearing, despite the availability of an alternative statutory appellate… Read More »
Assessment Order Passed Without Granting Adequate Time to Reply Set Aside for Breach of Natural Justice Assessment Order Passed Without Granting Adequate Time to Reply Set Aside for Breach of Natural Justice Issue Whether an assessment order passed under Section 143 within five days of issuing a show-cause notice—without granting the assessee’s request for reasonable… Read More »
Section 72A Disallowance Inapplicable as Restructuring Consideration Paid in Cash Was Not a Demerger Under Section 2(19AA) Issue Whether the provisions of Section 72A(4) regarding the allocation and carry-forward of unabsorbed losses in a demerger can be invoked when a court-approved restructuring scheme involves transfer of assets/liabilities for cash consideration rather than issuance of shares… Read More »
Processing of Tax Returns of Sitting Judges Under New Tax Regime Kept in Abeyance Pending Adjudication Issue Whether interim directions issued to halt the processing of tax returns of sitting High Court and Supreme Court Judges under the new tax regime should be modified to accommodate automated electronic processing by requiring Private Secretaries of Judges… Read More »
No Further Disallowance Required for Cash Sales Promotion; Charter Hire and Victualling Disallowances Deleted Issue Whether any further disallowance of sales promotion, gift, and sundry expenses under Section 37(1) was warranted when the assessee had already suo motu disallowed 50% of the cash-incurred expenditure. Whether disallowance under Section 40A(2)(b) on charter hire charges paid to… Read More »