Category Archives: Income Tax

Deductions Amortized In Prior Years Cannot Be Arbitrarily Disallowed In The Final Year And ESOP Cost Rebounds Are Revenue Expenses But Share Issue Costs Expand Capital Base Permanently

By | June 13, 2026
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Deductions Amortized In Prior Years Cannot Be Arbitrarily Disallowed In The Final Year And ESOP Cost Rebounds Are Revenue Expenses But Share Issue Costs Expand Capital Base Permanently Deductions Amortized In Prior Years Cannot Be Arbitrarily Disallowed In The Final Year And ESOP Cost Rebounds Are Revenue Expenses But Share Issue Costs Expand Capital Base… Read More »

Reassessment Notice Issued Beyond The Supreme Court Mandated Calculation Period Post-Ashish Agarwal And Rajeev Bansal Ruling Is Invalid As Time-Barred

By | June 13, 2026
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Reassessment Notice Issued Beyond The Supreme Court Mandated Calculation Period Post-Ashish Agarwal And Rajeev Bansal Ruling Is Invalid As Time-Barred Reassessment Notice Issued Beyond The Supreme Court Mandated Calculation Period Post-Ashish Agarwal And Rajeev Bansal Ruling Is Invalid As Time-Barred Issue Whether the reassessment order under Section 148A(d) and the subsequent notice under Section 148,… Read More »

Alternative Investment Fund’s Exemption Under Section 10(23FBA) Cannot Be Denied By Arbitrarily Reclassifying Investment Returns As Business Income

By | June 13, 2026
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Alternative Investment Fund’s Exemption Under Section 10(23FBA) Cannot Be Denied By Arbitrarily Reclassifying Investment Returns As Business Income Issue Whether the Assessing Officer was justified in re-characterizing an Alternative Investment Fund’s (AIF) interest income, short-term capital gains, and processing fees as business income to deny tax exemption under Section 10(23FBA), without applying settled judicial tests… Read More »

INCOME TAX CASE LAW DIGEST 12.6.2026

By | June 12, 2026
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INCOME TAX CASE LAW DIGEST 12.6.2026 INCOME TAX CASE LAW DIGEST 12.6.2026 Case Law Analysis Summary Relevant Act Section(s) Case Law Title Brief Summary Citation Income-tax Act, 1961 Sec. 119(2)(b) Shree Chandraprabha Medical Trust vs. Commissioner of Income-tax (Exemptions) A 113-day delay in e-verifying Form 10B during the COVID-19 period was condoned. The delay was… Read More »

Matter Remanded to Assessing Officer for De Novo Adjudication Due to Lack of Opportunity to Explain NRI Investments

By | June 12, 2026
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Matter Remanded to Assessing Officer for De Novo Adjudication Due to Lack of Opportunity to Explain NRI Investments Matter Remanded to Assessing Officer for De Novo Adjudication Due to Lack of Opportunity to Explain NRI Investments Issue Whether an ex-parte assessment order treating time deposits, foreign currency purchases, and bank interest as unexplained investments and… Read More »

Penalty Cannot Be Sustained on Estimated Profit Additions or Unsubstantiated Loose Sheets

By | June 12, 2026
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Penalty Cannot Be Sustained on Estimated Profit Additions or Unsubstantiated Loose Sheets Issue Whether a penalty for concealment of income under Section 271(1)(c) is legally sustainable when the underlying additions are based merely on an estimation of gross profit or on unsubstantiated loose sheets recovered during a tax proceeding. Facts The Additions: For the Assessment… Read More »

Assessment Order Under Black Money Act Quashed as TOLA Extensions Do Not Apply to Overcome Statutory Limitation

By | June 12, 2026
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Assessment Order Under Black Money Act Quashed as TOLA Extensions Do Not Apply to Overcome Statutory Limitation Issue Whether the time-limit extensions provided under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) apply to the Black Money Act, and whether an assessment order passed beyond the statutory two-year limit… Read More »

Section 153A Return Substitutes Section 139 Return, Negating Penalty Under Black Money Act for Omissions in Original Filing

By | June 12, 2026
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Section 153A Return Substitutes Section 139 Return, Negating Penalty Under Black Money Act for Omissions in Original Filing Issue Whether a penalty under Section 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 can be levied for failing to report foreign assets in the original Schedule FA of… Read More »

Digital Evidence Found in Seized Mobile Phones Lacks Statutory Legs Without Strong Corroborative Material

By | June 12, 2026
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Digital Evidence Found in Seized Mobile Phones Lacks Statutory Legs Without Strong Corroborative Material Issue Whether rough electronic notings, WhatsApp chats, unexecuted contract images, or dumb digital documents seized from a mobile phone during a search under Section 132 can form the sole basis for tax additions under Sections 68, 69, 69A, and 69C, or… Read More »

Exempt Investments Without Yield and Section 14A Disallowances Cannot Alter Book Profits or Capital Subsidies

By | June 12, 2026
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Exempt Investments Without Yield and Section 14A Disallowances Cannot Alter Book Profits or Capital Subsidies Issue Issue 1 (Section 14A vs. Rule 8D): Whether investments that did not yield any exempt income during the year can be included in the “average value of investments” for computing disallowance under Rule 8D. Issue 2 (Section 115JB Book… Read More »