ITAT Restricts Demonetization Addition to ₹7 Lakhs; Rules Enhanced Tax Rate u/s 115BBE is Prospective Issue Quantum: Whether cash deposits of ₹78 lakhs made during the demonetization period constitute unexplained money under Section 69A, considering the assessee’s business in handicrafts and exports. Tax Rate: Whether the enhanced tax rate under Section 115BBE (introduced via the… Read More »

ITAT Restores 12A Registration Application to CIT(E) to Verify Ownership Documents Issue Whether the Commissioner of Income Tax (Exemption) [CIT(E)] was justified in rejecting the assessee’s application for registration under Section 12A(1)(ac)(iii) and cancelling the provisional registration on the grounds of lack of ownership proof for the land used for charitable activities (Dharamshala), without considering… Read More »

Reassessment Notice u/s 148 for AY 2014-15 Quashed as Time-Barred Post-TOLA & Supreme Court’s Rajeev Bansal Ruling Issue Whether the notice under Section 148 issued on 22.07.2022 for the Assessment Year 2014-15, pursuant to the Supreme Court’s ruling in Ashish Agarwal, is barred by limitation considering the extended timelines under TOLA (Taxation and Other Laws… Read More »

ITAT Remands Ex-Parte CIT(A) Order; Cites Potential Communication Gaps in Faceless Regime Issue Whether an ex-parte appellate order passed by the CIT(A)/NFAC confirming tax additions should be set aside to grant the assessee a fresh opportunity of hearing, considering the potential for communication errors inherent in the electronic/faceless appeal system. Facts Assessment Year: 2015-16. The… Read More »

ITAT Grants Partial Relief on Cash Seized from Locker; Addition Restricted to Rs. 20 Lakhs Issue Whether the addition of Rs. 27,50,000/- made under Section 69A (unexplained money) for cash found in the assessee’s locker during a search operation should be upheld, or if the assessee’s explanation of past business savings merits partial acceptance, especially… Read More »

ITAT Remands 12AA Registration Refusal; CIT(E) Erred by Focusing on Past Corpus Grants Instead of Charitable Objects Issue Whether the Commissioner of Income Tax (Exemption) [CIT(E)] can refuse registration under Section 12AA solely on the ground that the applicant treated certain corpus grants as exempt in its balance sheet prior to registration, instead of examining… Read More »

IMPORTANT INCOME TAX CASE LAWS 18.11.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 2(9) Deputy Commissioner of Income-tax (BPU) v. Jitendra Rameshbhai Patel Proprietor deposited cash and transferred it to a company, claiming a gold sale. The arrangement was found to project unaccounted money as legitimate (proprietor admitted handling cash for commission… Read More »

Penalty Order of ₹101 Crores Stayed as Quantum Appeal Was Pending Before ITAT Issue Can an Assessing Officer (AO) validly pass an order imposing a penalty under Section 271(1)(c) while the assessee’s appeal against the underlying quantum assessment (the tax demand) is still pending before the Income Tax Appellate Tribunal (ITAT), considering the provisions of… Read More »

Revenue Cannot Withhold Refund Without a Valid Outstanding Demand Under Section 245 Issue Whether the Income Tax Department can withhold a portion of a refund determined under Section 154 by invoking Section 245, without demonstrating that any tax demand is actually “due” or “payable” by the assessee, and in the absence of any independent recovery… Read More »

80G Approval Granted Despite Minor Religious Objects; CIT(E) Order Reversed Issue Whether a charitable trust can be denied approval under Section 80G (and have its provisional approval cancelled) on the grounds that it has certain religious objects—such as constructing temples or performing Puja—even though it holds a valid Section 12A registration and its activities are… Read More »