Category Archives: Income Tax

Hospital providing medical relief is eligible for Section 12AB registration without retrospective cancellation by CIT(E).

By | July 24, 2026
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Hospital providing medical relief is eligible for Section 12AB registration without retrospective cancellation by CIT(E). Issue Whether a hospital providing medical relief qualifies as a charitable activity under the first limb of Section 2(15) without being impacted by commercial metrics like tariff structures, bed usage, or revenue per bed. Whether the Principal Commissioner / Commissioner… Read More »

Deposit in Capital Gains Scheme entitles Section 54 exemption, while distance of agricultural land and indexation require re-verification.

By | July 24, 2026
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Deposit in Capital Gains Scheme entitles Section 54 exemption, while distance of agricultural land and indexation require re-verification. Issue Whether an assessee is entitled to exemption under Section 54 when bank documentation confirms the deposit of unutilized sale proceeds into the Capital Gains Accounts Scheme. Whether the classification of agricultural land as a non-capital asset—based… Read More »

INCOME TAX CASE LAWS 21.07.2026

By | July 23, 2026
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INCOME TAX CASE LAWS 21.07.2026 Relevant Act Section Case Law Title Citation Brief Summary Black Money Act, 2015 Section 2 Vijendra Kedia v. DDIT (Inv.) & ACIT Click Here Notice/assessment quashed as a Not Ordinarily Resident was not an ‘assessee’ under Section 2(2) at notice issuance. Black Money Act, 2015 Section 10 Vijendra Kedia v.… Read More »

Prosecution Under Section 276CC Quashed as Resigned Director Was Not in Charge When Return Surpassed Due Date

By | July 23, 2026
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Prosecution Under Section 276CC Quashed as Resigned Director Was Not in Charge When Return Surpassed Due Date Prosecution Under Section 276CC Quashed as Resigned Director Was Not in Charge When Return Surpassed Due Date Issue Whether prosecution under Section 276CC read with Section 278B for failure to file a company’s income tax return can be… Read More »

Penalty Under Section 270A Is Unsustainable as AO Failed to Specify Applicable Limb of Misreporting

By | July 23, 2026
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Penalty Under Section 270A Is Unsustainable as AO Failed to Specify Applicable Limb of Misreporting Issue Whether a penalty levied under Section 270A for under-reporting of income in consequence of misreporting is legally sustainable when the Assessing Officer fails to specify the exact limb under Section 270A(9) in the show-cause notice and fails to establish… Read More »

Reassessment Order for AY 2018-19 Quashed as Sanction for Section 148 Notice Was Granted by Incompetent Authority

By | July 23, 2026
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Reassessment Order for AY 2018-19 Quashed as Sanction for Section 148 Notice Was Granted by Incompetent Authority Issue Whether a reassessment notice issued under Section 148 after the expiry of three years from the end of the relevant assessment year is valid when sanction is granted by a Principal Commissioner of Income Tax under Section… Read More »

Section 148 Reassessment Notice for AY 2015-16 Quashed as Barred by Ten-Year Limitation Period

By | July 23, 2026
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Section 148 Reassessment Notice for AY 2015-16 Quashed as Barred by Ten-Year Limitation Period Issue Whether the assessment year relevant to the previous year in which a search is conducted must be included when reckoning the extended ten-year limitation period under Section 149 read with Explanation 1 to Section 153A/153C, rendering a Section 148 notice… Read More »

Assessment Order Passed Within Extended Statutory Limit Is Valid as Draft Order and Hearing Procedures Were Complied With

By | July 23, 2026
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Assessment Order Passed Within Extended Statutory Limit Is Valid as Draft Order and Hearing Procedures Were Complied With Assessment Order Passed Within Extended Statutory Limit Is Valid as Draft Order and Hearing Procedures Were Complied With Issue Whether the assessment order for AY 2020-21 passed on 28.09.2022 was time-barred, and whether the non-issuance of a… Read More »

Assessee Is Entitled to 6% Interest on Seized Cash Refunded Due to Delayed Assessment

By | July 23, 2026
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Assessee Is Entitled to 6% Interest on Seized Cash Refunded Due to Delayed Assessment Issue Whether the High Court under Article 226 of the Constitution can award compensatory interest at 6% per annum on seized cash refunded to the assessee when the Revenue fails to frame an assessment within the statutorily prescribed time, despite pending… Read More »

Additions for Share Application Money and Unsecured Loans Deleted as Assessee Discharged Primary Onus

By | July 23, 2026
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Additions for Share Application Money and Unsecured Loans Deleted as Assessee Discharged Primary Onus Issue Whether additions made under Section 68 towards share application money and unsecured loans are sustainable when the assessee produces complete documentary evidence establishing the identity, creditworthiness, and genuineness of the lenders/applicants, and where the “source of source” amendment does not… Read More »