Absence of objective dissatisfaction under Section 14A(2) precludes Assessing Officer from applying Rule 8D.

By | September 11, 2026
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Absence of objective dissatisfaction under Section 14A(2) precludes Assessing Officer from applying Rule 8D. Issue Whether the Assessing Officer was justified in rejecting the assessee’s suo motu disallowance under Section 14A and invoking the formula prescribed under Rule 8D without recording objective dissatisfaction with the correctness of the assessee’s accounts and computation. Facts The assessee… Read More »

CIT(E) must evaluate reasonable cause to condone delay in filing Form 10AB for registration.

By | September 11, 2026
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CIT(E) must evaluate reasonable cause to condone delay in filing Form 10AB for registration. Issue Whether the CIT(E) was justified in rejecting an application for regularization of provisional registration (Form 10AB) solely on the ground of limitation without considering the statutory power to condone delay under Section 12A(1)(ac). Facts The assessee, a charitable trust/institution, was… Read More »

Exemption under Section 11 cannot be claimed for the first time in Section 148 returns.

By | September 11, 2026
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Exemption under Section 11 cannot be claimed for the first time in Section 148 returns. Issue Whether a charitable trust that failed to file returns under Section 139 within the prescribed time can validly claim exemption under Sections 11 and 12 for the first time in a return filed in response to a reassessment notice… Read More »

Date of transfer determines capital gains accrual, preventing substitution of subsequent higher transaction pricing.

By | September 11, 2026
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Date of transfer determines capital gains accrual, preventing substitution of subsequent higher transaction pricing. Issue Whether an assessee is entitled to deduction under Section 10AA when deduction claims were disallowed by the Assessing Officer for non-compliance and lack of documentary evidence, but partly allowed by the CIT(A) without seeking a remand report or verifying submissions… Read More »

Date of share transfer determines capital gains accrual, preventing substitution of subsequent higher transaction pricing.

By | September 11, 2026
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Date of share transfer determines capital gains accrual, preventing substitution of subsequent higher transaction pricing. Issue Whether the Assessing Officer was justified in treating two separate share transfers executed on different dates at different prices as a single composite transaction and substituting the higher subsequent price for the earlier transfer to assess capital gains. Facts… Read More »

Punjab & Haryana High Court has declared Section 147A of the Income-tax Act, 1961 unconstitutional,

By | September 11, 2026
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The Punjab & Haryana High Court has declared Section 147A of the Income-tax Act, 1961 unconstitutional, striking down the provision inserted by the Finance Act, 2026, with retrospective effect from April 1, 2021. Core Issue & Legislative Intent: Multiple High Courts previously held that notices under Section 148 must be issued through the faceless random… Read More »