Immunity Under Section 270AA Requires Reconsideration Where Rectification Order Erased Tax Demand and Created Refund

By | August 7, 2026
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Immunity Under Section 270AA Requires Reconsideration Where Rectification Order Erased Tax Demand and Created Refund Issue Whether an Assessing Officer can reject an application for immunity from penalty under Section 270AA on the ground of non-payment of original tax demand when a subsequent rectification order under Section 154 completely eliminated the demand, resulted in a… Read More »

Reassessment Order Issued Beyond Three Years Without Higher Authority Approval Under Section 151 Is Void

By | August 7, 2026
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Reassessment Order Issued Beyond Three Years Without Higher Authority Approval Under Section 151 Is Void Issue Whether the time allowed to an assessee under Section 148A(b) can be excluded while computing the three-year limitation period under Section 151. Whether a reassessment notice under Section 148 issued beyond three years with approval from the PCIT instead… Read More »

Reassessment notice issued beyond three years without PCCIT approval under Section 151 is invalid

By | August 7, 2026
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Reassessment notice issued beyond three years without PCCIT approval under Section 151 is invalid Issue Whether a notice issued under Section 148 after the expiry of three years from the end of the relevant assessment year without obtaining approval from the specified authority under Section 151 is valid, and whether the consequent reassessment order under… Read More »

Section 80GGC Deduction Disallowed as Political Donation Was a Non-Genuine Accommodation Entry Scheme

By | August 7, 2026
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Section 80GGC Deduction Disallowed as Political Donation Was a Non-Genuine Accommodation Entry Scheme Issue Whether a salaried employee is entitled to a deduction under Section 80GGC for a donation made to a political party when independent search findings establish that the donee entity operated as a conduit for providing bogus accommodation entries. Facts Deduction Claimed:… Read More »

Revision under Section 263 is impermissible when the Assessing Officer has conducted enquiries and no specific error is identified.

By | August 7, 2026
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Revision under Section 263 is impermissible when the Assessing Officer has conducted enquiries and no specific error is identified. Issue Whether the Principal Commissioner can validly invoke revisionary jurisdiction under Section 263 on the ground of lack of in-depth verification when the Assessing Officer had already called for and examined detailed documentary evidence during assessment,… Read More »

Additions under Section 153A deleted as no incriminating material was found during search and ownership under Section 69A remained unproven.

By | August 7, 2026
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Additions under Section 153A deleted as no incriminating material was found during search and ownership under Section 69A remained unproven. Issue Whether additions under Section 153A can be made in an unabated assessment without any incriminating material found during the search, relying solely on pre-existing documents (Base Note) available with the Revenue. Whether Section 69A… Read More »

Reassessment Order Quashed as Assessing Officer Made No Addition on Reasons Recorded for Reopening

By | August 7, 2026
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Reassessment Order Quashed as Assessing Officer Made No Addition on Reasons Recorded for Reopening Issue Whether a reassessment order passed under Section 147 is valid when the Assessing Officer makes additions on an entirely different ground (unexplained money under Section 69A) while making no addition on the specific ground for which the assessment was reopened… Read More »

Surplus from transfer of restored development rights is taxable as capital gains, not business income.

By | August 7, 2026
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Surplus from transfer of restored development rights is taxable as capital gains, not business income. Issue Whether gains from the transfer of restored development rights following JDA termination are taxable as capital gains or business income, whether such receipts are exempt capital receipts, and whether connected disallowances under Section 40(a)(ia) and claims for encroachment settlement… Read More »

PF/ESI delays due to COVID-19 and flash-flood asset losses are allowable, while TDS delay interest is penal.

By | August 7, 2026
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PF/ESI delays due to COVID-19 and flash-flood asset losses are allowable, while TDS delay interest is penal. Issue Whether delay in remitting employees’ PF/ESI contributions due to COVID-19 lockdown restrictions warrants disallowance under Section 36(1)(va). Whether interest paid on late remittance of Tax Deducted at Source (TDS) is compensatory in nature and allowable as a… Read More »

Manipulated derivative trading losses from illiquid stock options are non-deductible, while reopening approval jurisdiction requires CIT(A) re-examination.

By | August 7, 2026
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Manipulated derivative trading losses from illiquid stock options are non-deductible, while reopening approval jurisdiction requires CIT(A) re-examination. Issue Whether losses generated from trading in illiquid stock option derivatives constitute genuine business losses allowable under Section 28(i) or pre-arranged, fictitious losses. Whether the reassessment proceedings under Section 147/148 were invalid due to procedural non-compliance under Section… Read More »