Show-cause notices issued after the expiry of the High Court’s strict 12-week remand deadline are legally void. Issue Whether show-cause notices issued under Section 271D read with Section 260A are legally sustainable when the 12-week time limit explicitly mandated by the High Court for passing a fresh order under remand has completely expired. Facts The… Read More »
A bona fide claim on a complex, nascent legal issue like POEM does not justify a penalty for misreporting. Issue Whether a penalty for “misreporting of income” under Section 270A(9)(a) can be mechanically levied at 200% when an assessee makes a bona fide, legally plausible claim in a revised return based on a complex and… Read More »
Common Area Maintenance charges paid by tenants are subject to TDS as contractual service fees, not as rent. Issue Whether Common Area Maintenance (CAM) charges paid by a tenant company to a mall operator are liable for Tax Deducted at Source (TDS) under Section 194I at the rate of 10% as “Rent,” or if they… Read More »
Reassessment notice issued with sanction from an incorrect, lower authority under Section 151 is invalid and void. Reassessment notice issued with sanction from an incorrect, lower authority under Section 151 is invalid and void. Issue Whether a reassessment notice issued under Section 148 for the Assessment Year (AY) 2016-17 is legally sustainable when the mandatory… Read More »
Gross sale consideration is not “income escaping assessment” for invoking the extended limitation period under Section 149(1)(b). Issue Whether a reassessment notice issued under Section 148 on April 2, 2022, for the Assessment Year (AY) 2015-16 is barred by limitation under the provisions of Section 149 as amended by the Finance Act, 2021. Whether the… Read More »
Reassessment notice issued beyond the combined exclusion period under Section 149 provisos is barred by limitation. Issue Whether a reassessment notice issued under Section 148, along with the preceding order under Section 148A(d), is barred by limitation for the Assessment Year (AY) 2017-18 when computed by applying the mutual exclusions under the fifth and sixth… Read More »
Approved IBC Resolution Plan completely freezes past liabilities, barring the Revenue from issuing Section 148 reassessment notices. Issue Whether the Revenue can legally issue a reassessment notice under Section 148 or pass an order under Section 148A(d) for a period prior to the approval of a Resolution Plan under the Insolvency and Bankruptcy Code, 2016… Read More »
Consistency in Transfer Pricing methodology and prevention of double taxation on reversed provisions bind the Assessing Officer. Consistency in Transfer Pricing methodology and prevention of double taxation on reversed provisions bind the Assessing Officer. Issue Whether the Transactional Net Margin Method (TNMM) at the entity level remains the most appropriate method for benchmarking international transactions… Read More »
An assessment order is legally unsustainable and deemed unreasoned if it summarily treats bank credits as unexplained under Section 68 without evaluating the explanation offered by the taxpayer. Issue Whether a reassessment order passed under Section 147 read with Section 144B is legally valid if the Assessing Officer (AO) summarily treats book-entered bank credits as… Read More »
Trading results accepted without rejecting book accounts bars Section 68 additions for demonetization cash deposits. Issue Whether cash deposits made by a jeweler during the demonetization period can be treated as unexplained cash credits under Section 68 when the deposits originate from recorded sales that are fully supported by books of accounts, VAT returns, and… Read More »