Tax Audit Due Date Extended to November 10, 2025, and Due Date of ITR Extended to December 10, 2025 Issue: To provide relief to assessees and tax professionals from compliance burdens, the Central Board of Direct Taxes (CBDT) extended the statutory deadlines for filing both the Tax Audit Report (TAR) and the corresponding Income Tax… Read More »
IMPORTANT INCOME TAX CASE LAWS 28.10.25 Section Case Law Title Brief Summary Citation Relevant Act Section 9 of the Income-tax Act, 1961 Huawei International Pte. Ltd. v. ACIT, International Taxation Where a Singapore-based ICT company sold telecom equipment and software offshore to Indian customers without a Permanent Establishment (PE) in India, the reopening of assessment… Read More »
Penalty for Misreporting Deleted as Leave Encashment Claim Was Bona Fide. Issue Can a penalty for “misreporting of income” under Section 270A(9) be levied on a taxpayer for claiming an exemption in excess of the then-existing statutory limit, if the claim was made in good faith, based on a plausible interpretation of law, and was… Read More »
Existing 12AA Registration is a Valid Basis for Granting 80G Approval. Issue Can the Commissioner of Income Tax (Exemptions) deny an application for approval under Section 80G by questioning the charitable nature of an institution (e.g., for generating a surplus from student fees), when the same institution already holds a valid and subsisting registration as… Read More »
Clerical Error in 80G Form Cannot Deny Trust’s Entitlement to Full Registration. Issue Can a charitable trust, which is already registered and eligible for a full five-year approval under Section 80G(5), be granted a shorter, provisional registration simply because it inadvertently filed its application under the wrong clause of the said section? Facts The assessee,… Read More »
Denial of Requested Video Conference Hearing Vitiates Assessment Order. Issue Is an assessment order legally sustainable if the Assessing Officer passes it without granting a personal hearing through video conferencing, despite a specific written request for the same by the assessee? Facts The assessee-company’s income tax return for the Assessment Year 2022-23 was selected for… Read More »
Section 43B Disallowance Invalid if Tax Was Never Claimed as an Expense. Issue Can a disallowance be made under Section 43B for unpaid statutory dues (like VAT/GST) if the assessee never claimed these dues as a deduction in its Profit and Loss account in the first place? Facts For the Assessment Year 2018-19, the Assessing… Read More »
Disallowance of Commission is Unjustified When Linked to Substantial Growth in Sales and Profits. Issue Can an Assessing Officer (AO) disallow commission expenses by deeming them “unverifiable” and not genuine, even when the assessee provides substantial evidence of payment, confirmations from recipients, and can demonstrate a direct correlation between the commission paid and significant business… Read More »
Bad Debt Write-Off Allowed Alongside Provision; Proviso Prevents Double Deduction Issue How does the proviso to Section 36(1)(vii) of the Income-tax Act operate in conjunction with the deduction for a provision for bad and doubtful debts under Section 36(1)(viia)? Does it limit the total bad debt claim, or does it merely function as a mechanism… Read More »
Reopening Notice Quashed for Lack of Prima Facie Belief of Escaped Income. Issue Can an Assessing Officer (AO) issue a reassessment notice under Section 147 merely to conduct a detailed investigation into an assessee’s claims (such as the nature of offshore services or the existence of a Permanent Establishment), without having a genuine prima facie… Read More »