ITAT Chandigarh: Ex-Parte CIT(A) Order Set Aside for Fresh Adjudication on Merits 1. The Core Dispute The assessee challenged an appellate order passed by the Joint Commissioner of Income Tax (Appeals) [JCIT(A)], which confirmed several substantial additions made by the Assessing Officer (AO). The primary grievances included: Procedural Flaws: Additions made without providing copies of… Read More »

Interest Received on Compulsory Land Acquisition under Section 28 of the Land Acquisition Act is Exempt Compensation, Not Taxable Interest 1. The Core Dispute The primary issue was the taxability of ₹2,06,01,408 received by the assessee as interest on enhanced compensation under Section 28 of the Land Acquisition Act, 1894. AO’s Stand: The interest is… Read More »

Reassessment Based on Uncorroborated Third-Party Excel Sheets Quashed for Jurisdictional Defects 1. Core Issue: Validity of Reopening and Reliance on Digital “Dumb” Documents The dispute centered on an addition of ₹55,02,640 under Section 69A. The Assessing Officer (AO) reopened the assessment based on an Excel sheet found during a search on a third party (M/s… Read More »

Section 148 Notice Issued by Jurisdictional AO After March 29, 2022, is Void for Lack of Jurisdiction The Issue The primary legal challenge was whether a reassessment notice issued under Section 148 of the Income Tax Act, 1961, is valid if it was issued by a Jurisdictional Assessing Officer (JAO) instead of a Faceless Assessing… Read More »

Reassessment Order Quashed Due to Jurisdictional Error: JAO Notice Post-Faceless Regime Notification The Issue The core legal dispute was whether a reassessment notice issued under Section 148 by a Jurisdictional Assessing Officer (JAO) is valid if issued after March 29, 2022. This was the date the Ministry of Finance notified the Faceless Assessment Scheme, mandating… Read More »

ITAT Upholds CIT(A)’s Power to Remand Ex-Parte Assessment for Fresh Adjudication The Issue The Revenue challenged the order of the CIT (Appeals), who had “set aside” an ex-parte assessment order to the file of the Assessing Officer (AO) for fresh adjudication on merits. The Revenue contended that the CIT(A) did not have the jurisdiction to… Read More »

Penalty Under Section 271(1)(c) Cannot Survive if the Underlying Assessment Order is Quashed The Issue The Revenue challenged the deletion of a penalty amounting to ₹1,25,53,423 imposed under Section 271(1)(c). The Revenue contended that the CIT (Appeals) erred in deleting the penalty without examining the merits of the concealment or inaccurate particulars of income. The… Read More »

Revenue Authority Failed in Duty by Ignoring Evidence of Legitimate Business Cash Deposits The Issue The primary dispute was whether cash deposits totaling ₹1,95,61,240 in the bank account of an individual who did not file a return (non-filer) should be treated as “Unexplained Money” under Section 69A of the Income Tax Act. The Facts The… Read More »

Reassessment Order Quashed Due to Jurisdictional Error: JAO vs. Faceless AO Post-March 2022 The Issue The primary legal challenge was whether a reassessment notice issued under Section 148 (or preliminary order under Section 148A(d)) is valid if issued by a Jurisdictional Assessing Officer (JAO) instead of a Faceless Assessing Officer (FAO) after the mandatory faceless… Read More »

Availability of Prior Cash Withdrawals Negates Unexplained Money Addition During Demonetization The Issue Whether the Assessing Officer (AO) is justified in treating a portion of cash deposits (₹10 lakhs out of ₹15 lakhs) made during the 2016 demonetization period as unexplained income under Section 69A/68, even when the assessee demonstrated a clear trail of prior… Read More »