Disallowance under Section 14A cannot exceed exempt income, and dynamic expenses lack TDS liability. Issue Whether Section 14A disallowance can exceed the actual exempt income earned during the year. Whether a bad debt write-off is allowable if the underlying income was recognized and offered to tax in a previous assessment year. Whether business disallowances under… Read More »
Subsequent registration applies to pending assessments, protecting genuine trust donations from tax additions. Issue Whether a Section 12AA registration granted in a subsequent year applies retrospectively under the proviso to Section 12A(2) to validate exemptions under Sections 11 and 12 for pending assessment proceedings, thereby rendering additions under Section 68 and higher tax rates under… Read More »
Registration granted in subsequent year applies to pending assessments, making regular donations eligible for exemption. Issue Whether registration granted under Section 12AA in a subsequent year applies retrospectively to pending assessment proceedings under the proviso to Section 12A(2), thereby validating exemptions under Sections 11 and 12 and rendering additions under Section 68 and higher tax… Read More »
Exemption under Section 10(23EA) cannot be denied via Section 143(1) adjustments on debatable issues without prior intimation. Issue Whether the Central Processing Centre (CPC) is justified in making adjustments under Section 143(1) to deny an exemption under Section 10(23EA) without issuing a prior intimation of the proposed adjustment, and whether a debatable issue involving Section… Read More »
Rural agricultural land is not a capital asset, and hereditary ancestral land incurs no unexplained investment cost. Issue Whether the Assessing Officer was justified in taxing capital gains on the sale of rural agricultural land and making an addition for unexplained investment under Section 69B on hereditary ancestral land. Facts The assessee, an individual, did… Read More »
INCOME TAX CASE LAWS 23.06.2026 INCOME TAX CASE LAWS 23.06.2026 Relevant Act Section Case Law Title Citation Brief Summary Income-tax Act, 1961 Section 9 Commissioner of Income-tax (International Taxation)-1 v. Ernst and Young U.S. LLP 2026 Click Here 1. Matter remanded to Tribunal to properly evaluate whether advisory/consultancy services qualify as FTS or are exempt… Read More »
The Commissioner (Appeals) can validly set aside an ex-parte reassessment and remand it for fresh adjudication. The Commissioner (Appeals) can validly set aside an ex-parte reassessment and remand it for fresh adjudication. Issue Whether the Commissioner (Appeals) [CIT(A)] is legally empowered under Section 251(1)(a), read with the statutory proviso inserted via the Finance Act, 2024,… Read More »
Assessment orders completed during non-pending settlement applications remain fully valid and enforceable upon application rejection. Issue Whether assessment orders passed by an Assessing Officer are void for lack of jurisdiction or become unenforceable under sections 245HA and 153 upon the subsequent rejection of a settlement application, when those applications were filed after January 31, 2021,… Read More »
Adjusting a current refund against an older tax demand despite a subsisting stay is illegal. Issue Whether the Income Tax Department is legally justified in adjusting a valid tax refund determined for a subsequent year (AY 2025-26) against an outstanding, disputed tax demand of a prior year (AY 2018-19) for which an active interim stay… Read More »
Adjustments retained in a final assessment order must be adjudicated on merits during appeals. Issue Whether the Commissioner (Appeals) is legally justified in refusing to decide the merits of a tax adjustment simply because the assessee did not file a separate appeal against the initial Section 143(1) intimation, even though that same adjustment was formally… Read More »