15 Important INCOME TAX Law 25.02.2025 Section Case Law Title Brief Summary Citation 4 Rajendra Agarwal v. ACIT, Central Circle-1 Income from unexplained sources can be assessed based on incriminating documents. Click Here 12A Chandragupt Shephards Welfare Association v. Commissioner of Income-tax, Exemption A show-cause notice must be issued before rejecting a registration… Read More »
Reopening Notice Based on Change of Opinion Set Aside; Share Premium Issue Already Examined Issue: Whether a reopening notice issued under Section 148 of the Income-tax Act, 1961, is valid when it is based on a change of opinion without any fresh tangible material, particularly when the issue of share premium was already examined in… Read More »
Reassessment Proceedings Quashed; Resolution Plan Under IBC Prevails Over Income Tax Reassessment Issue: Whether reassessment proceedings initiated by income tax authorities under Sections 148 and 148A of the Income-tax Act, 1961, are valid when a resolution plan approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) stipulates that no… Read More »
Assessee Entitled to Refund of Rs. 6.30 Crore Due to Unjustified Adjustments Issue: Whether the assessee is entitled to a refund of Rs. 6.30 crore when the Assessing Officer (AO) has unjustifiably adjusted refunds totaling Rs. 5.52 crore for subsequent years, in addition to the refund due for the assessment year 2017-18. Facts: The assessee… Read More »
Reassessment Proceedings Quashed; Supreme Court Judgment Not a Mandate for Reopening Completed Assessments Issue: Whether an Assessing Officer (AO) can initiate fresh reassessment proceedings under Section 148A of the Income-tax Act, 1961, after a completed assessment based on a prior notice under Section 148, solely relying on the Supreme Court’s decision in Union of India… Read More »
Assessment under section 153A must be completed within 21 months, if not complted then seized cash should be returned to the assessee. I. Validity of Requisition Not Rejected on Ground of Delay Issue: Whether the requisition of seized cash by the Income Tax Department under Section 132A(1)(c) of the Income-tax Act, 1961, can be rejected… Read More »
Assessing Officer can assess income that comes to his notice during reassessment proceedings even if not specifically mentioned in the reopening order. Issue: Whether an Assessing Officer (AO) can make additions under Sections 68 and 69 of the Income-tax Act, 1961, for income discovered during reassessment proceedings, even if those additions were not the specific… Read More »
R&D Expenditure Incurred Outside India Eligible for Deduction Under Section 35(1)(iv), Not 35(2AB) Issue: Whether the assessee-company, engaged in the automotive industry, is entitled to a weighted deduction under Section 35(2AB) of the Income-tax Act, 1961, for R&D expenditure incurred outside India on facilities availed from its Associated Enterprises (AEs). Facts: The assessee-company claimed a… Read More »
Interest on borrowed funds can be claimed if used for acquiring property. I. Unexplained Investments – Addition Deleted Due to Mother’s Creditworthiness Issue: Whether an investment made by the assessee, sourced as a loan from his mother, can be treated as unexplained under Section 69 of the Income-tax Act, 1961, when the mother’s creditworthiness is… Read More »
A show-cause notice must be issued before rejecting a registration application. Cancellation of Trust Registration Set Aside; Matter Remanded for Fresh Adjudication with Opportunity of Hearing Issue: Whether the cancellation of a trust’s registration under Section 12A of the Income-tax Act, 1961, is valid when the Commissioner (Exemption) rejected the application without providing a further… Read More »