Estimated Income at Average Rate of Last three FY Upheld Following Rejection of Books of Account. Issue: Whether the Appellate Authority was justified in accepting the assessee’s alternative offer of computing net profit at 0.77 percent of total turnover, based on the average net profit of the preceding three financial years, after the Assessing Officer… Read More »
Transfer Order Under Section 127 Upheld: Assessee’s Non-Reply and Undenied Suspicious Transactions Justify Centralization. Issue: Whether a case transfer order under Section 127 of the Income-tax Act, 1961, issued by way of a “corrigendum” to an earlier order, can be challenged on the grounds that it “improved upon facts” and “reasons” not available in the… Read More »
Assessment Order by ACIT Quashed for Lack of Inherent Jurisdiction as Per CBDT Instructions on Nil Income. Issue: Whether an assessment order framed by an Assistant Commissioner of Income Tax (ACIT) is valid when the assessee has declared nil income, and as per CBDT Instruction No. 1/2011, the jurisdiction for such cases (with nil or… Read More »
Co-operative Society’s Interest Income from Mandatory Deposits in Co-operative Banks Eligible for Section 80P Deduction. Issue: Whether interest income earned by a co-operative society from mandatory deposits made with co-operative banks, as required by the Karnataka Co-operative Societies Act, is eligible for deduction under section 80P(2)(a)(i) of the Income-tax Act, 1961. Facts: For assessment years… Read More »
INCOME TAX NOTICE BIG RELIEF INCOME ESCAPING ASSESSMENT मिली राहत,आया बड़ा फैसला !
Ad Hoc Disallowance for Bogus Purchases Not Sustainable if Genuineness of Production Not Doubted and Purchase Rates are Fair Issue: Whether an ad hoc disallowance on alleged bogus or doubtful purchases under Section 69C (Unexplained Expenditure) is justified, even when the genuineness of the goods manufactured from these purchases is not doubted by the Assessing… Read More »
Reassessment Justified When Source of Investment, Including Contribution from Mother, Remains Doubtful Issue: Whether a reassessment notice is justified when an assessee fails to file an income tax return and, upon inquiry regarding an unexplained investment in immovable property, claims a part of the investment was made by a family member (mother), but the source… Read More »
Reassessment Notice Beyond 3 Years Invalid if Escaped Income Below Rs. 50 Lakhs Issue: Whether a reassessment notice issued under Section 148 after three years from the end of the relevant assessment year is valid if the income that has escaped assessment does not amount to, or is not likely to amount to, Rs. 50… Read More »
Reassessment Based on “Change of Opinion” Without New Tangible Material Held Invalid Issue: Whether a reassessment notice issued after four years from the end of the relevant assessment year, based on information already available to the Assessing Officer (AO) during the original assessment proceedings (completed under Section 143(3)), amounts to a mere “change of opinion”… Read More »
Disallowance of Interest Expense on FDs as Security for Business Loans Unjustified Issue: Whether interest expenditure paid by a business entity on bank loans, against which Fixed Deposits (FDs) held as security deposits are earning interest income, can be disallowed under Section 57 of the Income-tax Act, 1961, when the assessee offers only the net… Read More »