Category Archives: Income Tax

Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15).

By | August 10, 2026
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Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15). Issue Whether an institution providing student transport services on commercial lines against a fee, generating recurring surpluses, is entitled to regular registration under Section 12AB as a charitable entity under Section 2(15) of the Income-tax Act, 1961 /… Read More »

THE TAXATION AND OTHER LAWS (AMENDMENT) BILL, 2026

By | August 10, 2026
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THE TAXATION AND OTHER LAWS (AMENDMENT) BILL, 2026 AS PASSED BY LOK SABHA ON 6.8.2026 Bill No. 150-C of 2026 THE TAXATION AND OTHER LAWS (AMENDMENT) BILL, 2026 ABILL further to amend the Payment and Settlement Systems Act, 2007 and the Income–taxAct, 2025, and to amend the Finance Act, 2026.  BE it enacted by Parliament… Read More »

INCOME TAX CASE LAWS 04.08.2026

By | August 7, 2026
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INCOME TAX CASE LAWS 04.08.2026 Section Relevant Act Case Law Title Citation Brief Summary Section 2 Prohibition of Benami Property Transactions Act, 1988 Chhotelal v. Moolchand Lodhi Click Here Property purchased in the name of a child or out of joint family funds is excluded from the definition of a benami transaction; a civil suit… Read More »

Immunity Under Section 270AA Requires Reconsideration Where Rectification Order Erased Tax Demand and Created Refund

By | August 7, 2026
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Immunity Under Section 270AA Requires Reconsideration Where Rectification Order Erased Tax Demand and Created Refund Issue Whether an Assessing Officer can reject an application for immunity from penalty under Section 270AA on the ground of non-payment of original tax demand when a subsequent rectification order under Section 154 completely eliminated the demand, resulted in a… Read More »

Reassessment Order Issued Beyond Three Years Without Higher Authority Approval Under Section 151 Is Void

By | August 7, 2026
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Reassessment Order Issued Beyond Three Years Without Higher Authority Approval Under Section 151 Is Void Issue Whether the time allowed to an assessee under Section 148A(b) can be excluded while computing the three-year limitation period under Section 151. Whether a reassessment notice under Section 148 issued beyond three years with approval from the PCIT instead… Read More »

Reassessment notice issued beyond three years without PCCIT approval under Section 151 is invalid

By | August 7, 2026
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Reassessment notice issued beyond three years without PCCIT approval under Section 151 is invalid Issue Whether a notice issued under Section 148 after the expiry of three years from the end of the relevant assessment year without obtaining approval from the specified authority under Section 151 is valid, and whether the consequent reassessment order under… Read More »

Section 80GGC Deduction Disallowed as Political Donation Was a Non-Genuine Accommodation Entry Scheme

By | August 7, 2026
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Section 80GGC Deduction Disallowed as Political Donation Was a Non-Genuine Accommodation Entry Scheme Issue Whether a salaried employee is entitled to a deduction under Section 80GGC for a donation made to a political party when independent search findings establish that the donee entity operated as a conduit for providing bogus accommodation entries. Facts Deduction Claimed:… Read More »

Revision under Section 263 is impermissible when the Assessing Officer has conducted enquiries and no specific error is identified.

By | August 7, 2026
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Revision under Section 263 is impermissible when the Assessing Officer has conducted enquiries and no specific error is identified. Issue Whether the Principal Commissioner can validly invoke revisionary jurisdiction under Section 263 on the ground of lack of in-depth verification when the Assessing Officer had already called for and examined detailed documentary evidence during assessment,… Read More »

Additions under Section 153A deleted as no incriminating material was found during search and ownership under Section 69A remained unproven.

By | August 7, 2026
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Additions under Section 153A deleted as no incriminating material was found during search and ownership under Section 69A remained unproven. Issue Whether additions under Section 153A can be made in an unabated assessment without any incriminating material found during the search, relying solely on pre-existing documents (Base Note) available with the Revenue. Whether Section 69A… Read More »

Reassessment Order Quashed as Assessing Officer Made No Addition on Reasons Recorded for Reopening

By | August 7, 2026
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Reassessment Order Quashed as Assessing Officer Made No Addition on Reasons Recorded for Reopening Issue Whether a reassessment order passed under Section 147 is valid when the Assessing Officer makes additions on an entirely different ground (unexplained money under Section 69A) while making no addition on the specific ground for which the assessment was reopened… Read More »