Loans taken prior to the assessment year cannot be added as unexplained cash credit. Additions under Section 68 Deleted for Unsecured Loans and Share Capital Key Issues and Decisions: I. Unsecured Loans from Various Parties: Issue: Whether the AO was justified in adding unsecured loans received by the assessee company as unexplained cash credit under… Read More »
Order Refusing Condonation of Delay in Filing Revised Return Set Aside; Matter Remanded to CBDT Issue: Whether an order refusing to condone the delay in filing a revised return under Section 139(5) of the Income-tax Act, 1961, is valid when it is passed by the Additional Commissioner (ITA Cell) with the approval of the Member… Read More »
Reassessment Notice for Bogus Sales Quashed Due to Lack of Independent Inquiry and Delay in Filing SLP Issue: Whether a reassessment notice issued under Section 148 of the Income-tax Act, 1961, for alleged bogus sales is valid when the Assessing Officer (AO) relies on information from another agency without conducting an independent inquiry, and whether… Read More »
Unexplained Cash Deposits During Demonetization: Peak Credit Theory Rejected; Remand for Proper Verification Key Issues and Decisions: I. Peak Credit Theory Rejected for Cash Deposits: Issue: Whether the assessee, a firm trading in gold and silver, can benefit from the peak credit theory for cash deposits made in a third-party account during demonetization, which were… Read More »
Various expenses incurred by a statutory authority can be allowed as business expenditure. Allowability of Various Expenses Claimed by Statutory Authority as Business Deductions Key Issues and Decisions: I. IMC Transfer Expenses: Issue: Whether expenses incurred by the assessee, a statutory authority, for schemes transferred to the Indore Municipal Corporation (IMC) are deductible business expenses.… Read More »
Income from a property cannot be taxed equally in the hands of both owners if one has obtained benefits. Income from House Property – Ownership and Taxability Issue: Whether the assessee can be taxed on income from a co-owned property solely based on their signature on the sale deed, without evidence of actual ownership or… Read More »
Dishonor of Cheques by Chartered Accountant: Remand for Reconsideration of “Other Misconduct” Issue: Whether the dishonor of cheques issued by a Chartered Accountant (CA) constitutes “other misconduct” under Section 22 of the Chartered Accountants Act, 1949, and whether the Board of Discipline (BoD) adequately considered the context of the dishonor. Facts: A Chartered Accountant’s cheques… Read More »
Provision for expenses not claimed as applied income during the year need not be disallowed. Rectification Order Disallowing Provision for Expenses Set Aside for Charitable Trust Issue: Whether a rectification order under Section 154 of the Income-tax Act, 1961, disallowing a provision for expenses claimed by a charitable trust is valid, especially when the trust… Read More »
Reassessment Notice for Bogus Long-Term Capital Gains Set Aside Due to Lack of Independent Opinion Issue: Whether a reassessment notice issued under Section 148 of the Income-tax Act, 1961, for alleged bogus long-term capital gains (LTCGs) is valid when the Assessing Officer (AO) relies on borrowed satisfaction and fails to form an independent opinion. Facts:… Read More »
Interest and late fees can be levied for delay in 26QB TDS deduction and payment, even if there was a genuine mistake. Issue: Whether the assessee is liable to pay interest and late filing fees for the delayed deduction and payment of TDS under Section 194IA of the Income Tax Act, 1961, on a property… Read More »