Reassessment Notice Issued to Amalgamated Company Quashed Issue: Whether a reassessment notice issued under Section 148 of the Income-tax Act, 1961, is valid when it is addressed to a company that has ceased to exist due to amalgamation. Facts: The assessee company was amalgamated with another company. Despite being informed of the merger, the revenue… Read More »

ITAT can not decide on Section 68 Addition when the Commissioner (Appeals) has not addressed the issue Tribunal’s Decision on Section 68 Addition Set Aside for Lack of Consideration by Commissioner (Appeals) Issue: Whether the Income Tax Appellate Tribunal (ITAT) can decide on the merits of an addition made under Section 68 of the Income-tax… Read More »

Due to financial distress of borrowers, Taxpayer can follow Cash Method instead of Mercantile Method  to  book  interest income on loans Title: Change of Accounting Method from Mercantile to Cash Allowed Issue: Whether an assessee can change their method of accounting from the mercantile system to the cash system, and under what circumstances such a… Read More »

Reopening of assessment is not justified if Loss on sale of Shares is considered as business loss instead of Speculation Loss during the original assessment.  Reassessment Notice for Reclassifying Business Loss as Speculation Loss Set Aside Issue: Whether a reassessment notice issued under Section 148 of the Income-tax Act, 1961, to reclassify a business loss… Read More »

Additions under section 69A cannot be made based on loose papers and documents without corroborative evidence.  Scrutiny of Additions for Unexplained Moneys and Expenditures; Emphasis on Evidence and Verification Key Issues and Decisions: I. Unexplained Money Addition Based on Difference in Sale Agreement and Deed: Issue: Whether an addition under Section 69A for the difference… Read More »

A charitable trust can claim exemption under section 11 even if initial error in Form 10B on the basis of revised audit report,  Incorrect Form 10B Filing Rectified; Exemption under Section 11 Allowed for Charitable Trust Issue: Whether an assessee trust can be denied exemption under Section 11 of the Income-tax Act, 1961, due to… Read More »

An educational trust can claim exemption under section 10(23C) even if it files its ITR 5 instead of ITR 7 Exemption and Deduction Claims of Educational Trust Remanded for Fresh Consideration Key Issues and Decisions: I. Exemption under Section 10(23C) and Filing of Incorrect Form: Issue: Whether the assessee, an educational trust, can be denied… Read More »