14 IMPORTANT INCOME TAX CASE LAWS 05.03.2025 Section Case Law Title Brief Summary Citation Relevant Act 2(9)(d) (PBPTA) DCIT v. SRS Mining Properties attached were classified as Benami Properties due to corroborative evidence of concealment. Seized Assets Deemed Benami Due to Concealment and Retracted Statements. Click Here Prohibition of Benami Property Transactions Act, 1988 10(23C)(vi)… Read More »
Company Directors Liable for Prosecution for Failure to Remit TDS. Issue: Whether company directors can be prosecuted under Section 276B, read with Section 278B, of the Income-tax Act, 1961, for the company’s failure to deduct and remit Tax Deducted at Source (TDS) to the Central Government. Facts: A company was required to deduct TDS and… Read More »
Penalty under Section 271E Set Aside Due to Lack of Recorded Satisfaction. Issue: Whether a penalty imposed under Section 271E for violating Section 269T is valid when the Assessing Officer fails to record satisfaction in the assessment order that it is a case warranting initiation of penalty proceedings. Facts: The Assessing Officer imposed a penalty… Read More »
Cross-Objections Not Maintainable in Section 260A Appeals. Issue: Whether a cross-objection is maintainable in an appeal filed under Section 260A of the Income-tax Act, 1961. Facts: An appeal was filed under Section 260A of the Income-tax Act, 1961. A cross-objection was filed by the respondent. Decision: The court held that cross-objections are not maintainable in… Read More »
TDS Credit Must Be Allowed if appearing in 26AS; Assessment Order Remanded for Fresh Adjudication. Issue: Whether an Assessing Officer’s assessment order under Section 144 is valid when the officer fails to allow credit for Tax Deducted at Source (TDS) that is reflected in Form 26AS. Facts: The assessee, an employee of Indian Railways, received… Read More »
Section 153C Proceedings Void Ab Initio Due to Lack of Satisfaction Note for a person other than the searched person. Issue: Whether the recording of a separate satisfaction note is mandatory before initiating proceedings under Section 153C of the Income-tax Act, 1961, for a person other than the searched person. Facts: A search was conducted… Read More »
Reopening of Assessment Invalid Due to Lack of Escaped Income and Improper Consideration of Assessee’s Explanation. Issue: Whether an Assessing Officer can validly assume jurisdiction to reopen an assessment under Section 148A when there is no evidence of escaped income and the assessee’s explanation is not properly considered. Facts: The assessee, a trust running a… Read More »
Faceless Assessment Order Set Aside Due to failure to issue a show-cause notice and draft assessment order Issue: Whether a faceless assessment order is valid when the Assessing Officer fails to issue a show-cause notice and draft assessment order, as mandated by Section 144B of the Income-tax Act, 1961. Facts: The assessee, an HUF, filed… Read More »
Assessing Officer’s Reopened Assessment Invalid Due to Failure to Address Assessee’s Objections. Issue: Whether an Assessing Officer’s reopened assessment is valid when the officer fails to address the assessee’s objections to the reopening before making additions to the assessed income. Facts: The Assessing Officer (AO) reopened the assessee’s assessment based on information from the Investigation… Read More »
Assessing Officer’s Order Set Aside Due to Variance in Allegations and Lack of Opportunity for Assessee. Issue: Whether a notice and order issued under sections 148A(b) and 148A(d) of the Income-tax Act, 1961, are valid when the allegations in the order differ from those in the notice, and the assessee is denied an effective opportunity… Read More »