Non-Resident’s Omission of Interest Income Attracts 50% Under-Reporting Penalty, Not 200% Misreporting Penalty

By | September 12, 2026
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Non-Resident’s Omission of Interest Income Attracts 50% Under-Reporting Penalty, Not 200% Misreporting Penalty Non-Resident’s Omission of Interest Income Attracts 50% Under-Reporting Penalty, Not 200% Misreporting Penalty Issue Whether an NRI who omitted interest income due to reliance on an accountant and technological unfamiliarity is liable for a 200% penalty for misreporting of income under Section… Read More »

Assessee is Entitled to Full Refund of Prepaid Taxes with Statutory Interest in Reassessment Proceedings

By | September 12, 2026
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Assessee is Entitled to Full Refund of Prepaid Taxes with Statutory Interest in Reassessment Proceedings Issue Whether an assessee who files a return of income in response to a notice under Section 148 is entitled to full credit and refund of prepaid taxes (advance tax and TDS) along with statutory interest under Section 244A, despite… Read More »

Conditional Stay Orders Relying Mechanically on 20% Deposit Guidelines Are Unsustainable and Remanded for Independent Decision

By | September 12, 2026
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Conditional Stay Orders Relying Mechanically on 20% Deposit Guidelines Are Unsustainable and Remanded for Independent Decision Conditional Stay Orders Relying Mechanically on 20% Deposit Guidelines Are Unsustainable and Remanded for Independent Decision Issue Whether an authority deciding a stay application under Section 220(6) must independently exercise its discretionary powers rather than mechanically relying on CBDT… Read More »

Rectification Under Section 154 Must Delete Duplicate Addition When Same Cash Deposit Is Assessed in Successor’s Hands

By | September 12, 2026
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Rectification Under Section 154 Must Delete Duplicate Addition When Same Cash Deposit Is Assessed in Successor’s Hands Issue Whether an addition of unexplained cash deposit under Section 69A can be retained in the hands of a dissolved firm under a Section 154 rectification proceeding, when the exact same cash deposit has already been assessed and… Read More »

Assessment Orders Passed Without Traceable Section 153D Mandatory Approval Letters Are Illegal And Quashed

By | September 12, 2026
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Assessment Orders Passed Without Traceable Section 153D Mandatory Approval Letters Are Illegal And Quashed Issue Whether the revenue bears the burden of proving compliance with the mandatory requirement of prior approval under Section 153D when specifically challenged by the assessee. Whether assessment orders passed under search and seizure provisions are sustainable when the revenue fails… Read More »

Reassessment Passed Without Pecuniary Jurisdiction and Transfer Order Under Section 127 Is Void Ab Initio

By | September 12, 2026
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Reassessment Passed Without Pecuniary Jurisdiction and Transfer Order Under Section 127 Is Void Ab Initio Issue Whether issuance of notices under Section 148 and Section 143(2) by an Assessing Officer lacking pecuniary jurisdiction renders the reassessment proceedings void ab initio. Whether failure to issue an order under Section 127 transferring jurisdiction to the Assessing Officer… Read More »

Suo-Moto Section 40(a)(ia) Disallowance Does Not Absolve Chapter XVII-B TDS Compliance Obligations

By | September 12, 2026
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Suo-Moto Section 40(a)(ia) Disallowance Does Not Absolve Chapter XVII-B TDS Compliance Obligations Issue Whether a suo-moto 30% disallowance of year-end provisions under Section 40(a)(ia) absolves an assessee from compliance with tax deduction at source (TDS) obligations under Chapter XVII-B and liability as an “assessee in default” under Section 201. Whether non-deduction of TDS on year-end… Read More »

TP adjustments must be restricted to AE transactions and routine corporate expenses excluded.

By | September 12, 2026
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TP adjustments must be restricted to AE transactions and routine corporate expenses excluded. Issue Whether transfer pricing adjustments must be restricted solely to international transactions with Associated Enterprises (AEs) or extended entity-wide. Whether non-recurring or non-AE expenses (amortization of goodwill, bad debts, legal costs) should be excluded from operating costs under TNMM. Whether the TPO… Read More »

Reopening of assessment is unjustified as optional partnership deed clauses do not mandate paying partner interest or remuneration.

By | September 12, 2026
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Reopening of assessment is unjustified as optional partnership deed clauses do not mandate paying partner interest or remuneration. Issue Whether the mere incorporation of discretionary or amended clauses in a partnership deed regarding interest on capital and partners’ remuneration signifies that such amounts were mandatorily payable to the partner. Whether reopening of the individual partner’s… Read More »

Renewal of registration under Section 12AB cannot be denied based on Section 13 violations or old search material.

By | September 12, 2026
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Renewal of registration under Section 12AB cannot be denied based on Section 13 violations or old search material. Issue Whether the Principal Commissioner of Income Tax (PCIT) can deny renewal of registration under Section 12AB by examining specified violations or fund diversions beyond the immediately preceding three years as stipulated in Rule 17A(g). Whether an… Read More »