Reopening of Assessment Year 2015-16 Quashed as Barred by Limitation Under TOLA Guidelines Issue Whether the reassessment proceedings initiated for Assessment Year 2015-16 are barred by limitation under Section 149 of the Income-tax Act, considering that the relaxation provisions of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act (TOLA) apply only… Read More »

Verified banking channels and unverified stamp portal data invalidate unexplained property investment tax additions. Issue Section 69 (Unexplained Investments): Whether an addition made by the Assessing Officer for unexplained investment can be sustained if the assessee presents comprehensive banking, PPF, and cash flow records explaining the complete source of the transaction. Section 56(2)(x) (Income from… Read More »

Business compensation, actual cost overruns, and initial site expenses are fully deductible revenue expenditures. Issue Tiruvottiyur Project: Whether a mutual cancellation compensation of Rs. 21 crores paid by a real estate developer is a fully deductible revenue expenditure under Section 37(1) or if it constitutes a project inventory cost that must be proportionally deferred based… Read More »

CCIT cannot reject delay condonation solely for lacking called-for particulars if Section 80P eligibility exists. Issue Whether the Chief Commissioner of Income Tax (CCIT) was justified in rejecting the applications filed by Cooperative Societies for condonation of delay in filing their income tax returns under CBDT Circular Nos. 13/2023 and 14/2024, on the ground that… Read More »