I. PCIT cannot revise assessment under Section 263 if the AO conducted an inquiry and took a plausible view. II. Section 263 revision period for non-reassessment items runs from the original assessment, not a subsequent reassessment. I. Distinction between ‘Lack of Inquiry’ and ‘Inadequate Inquiry’ for Section 263 Revision. Issue: Whether a Principal Commissioner can… Read More »

I. No TDS default on year-end provision for resident vendors where no accrual or payment. II. Interest under Section 201(1A) is leviable for delayed TDS on actual payments from the date of deductibility. III. No TDS default on unpaid provisions to non-residents under DTAA, but interest under Section 201(1A) applies to delayed actual payments. I.… Read More »

DTVSV declaration is valid despite minor discrepancies, requiring Designated Authority to process it. Issue: Whether a declaration filed under the Direct Tax Vivad se Vishwas Scheme (DTVSV Scheme) introduced by the Finance (No. 2) Act, 2024, can be rejected by the Designated Authority (DA) on grounds of non-disclosure of a pending writ petition relating to… Read More »

Assessment order passed without granting adequate opportunity due to AR’s medical emergency is a violation of natural justice. Issue: Whether an assessment order passed by the Assessing Officer (AO) is a violation of the principles of natural justice and liable to be set aside, if it is issued without allowing sufficient time for the assessee… Read More »

Centralization of assessment files to a Central Circle is valid under Section 127 when a search operation reveals interconnected incriminating documents affecting multiple entities across different locations, ensuring coordinated investigation. Issue: Whether the Principal Commissioner has the power under Section 127 of the Income-tax Act, 1961, to transfer the assessment files of an assessee from… Read More »

Principal Commissioner cannot revise an assessment under Section 263 if the AO took a plausible view after examining the issue. Issue: Whether the Principal Commissioner can initiate revisionary proceedings under Section 263 of the Income-tax Act, 1961, to disallow a deduction claimed by a cooperative society under Section 80P(2)(d) on interest income from cooperative banks,… Read More »

Unsecured loan additions under Section 68 deleted as identity, creditworthiness, and genuineness were established, and CIT(A) erred in not admitting new evidence. Issue: Whether additions made by the Assessing Officer under Section 68 of the Income-tax Act, 1961, for unsecured loans can be deleted if the assessee provides comprehensive documentation proving the identity of the… Read More »

Sundry creditor additions for bogus purchases need re-examination to determine if Section 68 applies and if a purchase allowance is warranted given accepted sales. Issue: When an Assessing Officer (AO) makes an addition on account of sundry creditors under Section 68 of the Income-tax Act, 1961, by deeming them bogus, but the assessee’s sales as… Read More »

Interest claims by an AOP/BOI to its members are disallowed if the entity is assessable as an AOP and the members voluntarily pooled funds for a joint venture. Issue: Whether interest paid by a private specific trust, which has declared itself as an Association of Persons (AOP) in its income tax return and whose beneficiaries… Read More »

Sales incentives paid to retailers by an agent on behalf of principals are not “commission” under Section 194H, and genuine business expenditure cannot be disallowed merely due to unserved notices. Issue 1: Applicability of TDS under Section 194H on sales promotion and cash incentives paid to retailers by an agent on behalf of principals. Whether… Read More »