14 INCOME TAX CASE LAWS 06.02.2025 0 Sr No Case Law Title Brief Summary Citation Relevant Section and Act 1 Assistant Commissioner of Income-tax v. Suryanarayana Iyer Income held not to have accrued during the relevant assessment year. Income Accrual: Hypothetical Income Not Taxable : Only the real income could be brought to tax Click… Read More »
Complaint under Section 276C cannot be quashed at the initial stage of prosecution. Summary in Key Points: Issue: Can a complaint alleging tax evasion under Section 276C(1) be quashed at the initial stage of prosecution? Facts: A complaint was filed against the assessees for allegedly evading capital gains tax by receiving a portion of the… Read More »
TDS Default: Assessee Allowed to Seek Compounding of Offense under Section 320 CrPC Summary in Key Points: Issue: Can the assessee, who deducted TDS but failed to deposit it on time, seek compounding of the offense under Section 320 of the Code of Criminal Procedure (CrPC), given that the TDS amount and interest have been… Read More »
Penalty under Section 271B Cancelled: Reasonable Cause for Delay in Audit Report Summary in Key Points: Issue: Was the penalty levied under Section 271B for failure to get accounts audited justified, or did the assessee have a reasonable cause for the delay? Facts: The assessee, a partnership firm, failed to get its accounts audited and… Read More »
Reopening Notice Quashed: NCLT Resolution Plan Extinguishes Past Dues Summary in Key Points: Issue: Was the reopening notice issued under Section 148 valid after the approval of a resolution plan by the National Company Law Tribunal (NCLT) and subsequent dismissal of the department’s appeal by the National Company Law Appellate Tribunal (NCLAT)? Facts: A search… Read More »
Reopening Notice Quashed: Approval under Section 151 Granted Without Application of Mind Summary in Key Points: Issue: Was the approval granted under Section 151 for issuing a notice under Section 148 valid, given the discrepancy in the income figures between the approval and the draft order? Facts: The assessee challenged the validity of a notice… Read More »
Reopening Notice Quashed: Notice Issued to Deceased Assessee Without Informing Legal Heir Summary in Key Points: Issue: Was the reopening notice issued under Section 148 valid, given that it was issued to a deceased assessee without informing their legal heir? Facts: The original assessee passed away on July 30, 2021. The Assessing Officer issued a… Read More »
Assessment Order Set Aside: Validity of an order cannot be justified on the basis of additional reasons given in the counter. Summary in Key Points: Issue: Was the assessment order valid, given the contradictory findings, lack of proper consideration of the assessee’s reply and supporting documents, and the absence of reasons for rejecting the assessee’s… Read More »
Reassessment proceedings quashed due to failure to provide a hearing before transfer of case under Section 127 Summary in Key Points: Issue: Was the transfer of the assessee’s case under Section 127 valid, given that the Pr. CIT did not provide an opportunity for hearing before the transfer? Did the CIT(A) err in refusing to… Read More »
Tax on surrendered income during Survey under Section 115BBE :Case Remanded for Hearing on Merits: Assessee to be Given One Last Opportunity Summary in Key Points: Issue: Was the assessee given a reasonable opportunity of hearing before the tax was charged under Section 115BBE on the income surrendered during the survey? Facts: The assessee surrendered… Read More »