Penalty under section 271(1)(c) cannot be imposed without a clear show-cause notice. Penalty Order Quashed; Ambiguous Show Cause Notice Violates Due Process Issue: Whether a penalty order under Section 271(1)(c) of the Income-tax Act, 1961, is valid when the Assessing Officer (AO) initiated penalty proceedings for “concealment of income” but levied a penalty for “furnishing… Read More »
ITAT Order Quashed; Ex-Parte Assessment and Appeal Dismissal Violate Natural Justice Issue: Whether the Income Tax Appellate Tribunal (ITAT) erred in dismissing an assessee’s appeal without considering additional submissions and without addressing the infirmity of an ex-parte assessment order passed by the Assessing Officer (AO). Facts: The assessee, a 64-year-old retired serviceman, filed his Income… Read More »
Incorrect TDS deduction u/s 194C intstead of 194J can lead to interest liability under section 201(1A). Section 194C/194J TDS Error; Interest Liability Upheld; Interest Calculation Remanded Issue: Whether an assessee who deducted TDS under Section 194C instead of Section 194J is liable to pay interest under Section 201(1A) for the delayed payment of the correct… Read More »
Reopening of assessment is not justified if the assessee was not informed about non-existent bogus entity in SCN Reassessment Notice Quashed; Violation of Natural Justice; Non-Disclosure of Incriminating Material Issue: Whether an order under Section 148A(d) and a notice under Section 148 are valid when the Assessing Officer (AO) concluded that a contractor was a… Read More »
A minor error in issuing a notice under section 148 does not invalidate it. Section 148 Notice with Incorrect Information Rectified; Rejection Order Quashed Issue: Whether a notice issued under Section 148 of the Income-tax Act, 1961, is invalid when it contains information pertaining to another assessee, and whether the rejection of objections without considering… Read More »
Reassessment Notice to Non-Existent Entity Quashed; Amalgamation Information Ignored Issue: Whether a notice issued under Section 148 of the Income-tax Act, 1961, to a company that had already been amalgamated with another company is valid. Facts: The Assessing Officer (AO) issued a notice under Section 148 dated March 30, 2021, for Assessment Year 2013-14 against… Read More »
Minor delay in filing Form 10B can be condoned. Condonation of Delay Granted; Pragmatic Approach Required in Time Extensions Issue: Whether the rejection of an assessee-trust’s application for condonation of delay in uploading an audit report is justified when the delay was only 1 hour, 19 minutes, and 16 seconds beyond the midnight deadline. Facts:… Read More »
Income Tax Department has to re-compute income Due to Falsified Accounts based on investigations by CBI and SFIO on filing Application u/s 119 CBDT Order Quashed; Reassessment Directed Due to Falsified Accounts Issue: Whether the CBDT’s rejection of an assessee company’s application for reassessment of income, which was based on falsified corporate accounts, should be quashed,… Read More »
Application for registration under section 80G(5)(iii) can be considered even if filed after six months. 80G Final Approval Rejection Quashed; Hyper-Technical Rejection Without Merit Invalid Issue: Whether the Commissioner (Exemptions) is justified in rejecting an assessee’s application for final approval under Section 80G(5)(iii) on the ground that activities commenced before obtaining provisional approval and the… Read More »
Interest disallowance on interest-free advances is not justified if there is commercial expediency. Assessee Relief on Interest Disallowance, Provision for Expenses, and Other Issues I. Interest on Borrowed Capital (Section 36(1)(iii)) Issue 1: Disallowance of interest on advances to three companies. Decision: Commissioner (Appeals) justified in deleting disallowance as there was commercial expediency and the… Read More »