Single-day delay in ITR filing due to technical glitches is condonable, especially when the initial application was timely. Issue: Whether a one-day delay in filing an Income Tax Return (ITR) can be condoned under Section 119(2)(b) of the Income-tax Act, 1961, when the delay is attributed to technical glitches and the initial condonation application was… Read More »

Denial of DTVSV Scheme Benefits for Carry Forward Loss Based on Subsequent Year’s Return is Erroneous. Issue: Whether an assessee, who filed a return for an assessment year (AY 2022-23) declaring a business loss to be carried forward, is precluded from settling the dispute under the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, if… Read More »

Assessee’s Explanation for Cash Deposits During Demonetization Period from Gold Loan Repayments Accepted; Section 69A Addition Deleted. Issue: Whether cash deposits made by the assessee in his bank account during the demonetization period (Assessment Year 2017-18) could be treated as unexplained money under Section 69A of the Income-tax Act, 1961, when the assessee provided a… Read More »

Section 54F Exemption Allowed for Multiple Floors of a Single Residential House; Indirect Funding Route Not a Bar. Issue: Whether different floors of a single residential house owned by an assessee should be considered as multiple residential houses, thereby disqualifying the assessee from claiming exemption under Section 54F (1) of the Income-tax Act, 1961, which… Read More »

Contractual Penalties Incurred in Normal Course of Business are Allowable as Business Expenditure Under Section 37(1). Issue: Whether ‘penalties’ and late fees deducted by government authorities from a road construction company’s bills for reasons like non-deployment of machinery, delayed commencement, or slow progress, are allowable as business expenditure under Section 37(1) of the Income-tax Act,… Read More »

Brought Forward Unabsorbed Depreciation Merges with Current Depreciation and Can Be Set Off Against Any Income. Issue: Whether brought forward unabsorbed depreciation from a preceding year should be treated as current year depreciation, thereby allowing it to be set off against any current year income, including income from other sources, under Section 72(1) of the… Read More »

Trust Registration Denial Remanded: Assessee Granted Opportunity to Submit Additional Evidence on Loans, Expenses, and Charitable Activities. Issue: Whether the Commissioner (Exemption) was justified in denying registration to an assessee-trust under Section 12A based on alleged irregularities concerning borrowed loans, discrepancies in expense details, and insufficient evidence of charitable activities, or if the matter should… Read More »

ITR filing Date Extened for AY 2025-26 Press Release CBDT has decided to extend the due date of filing of ITRs, which are due for filing by 31st July 2025, to 15th September 2025 This extension will provide more time due to significant revisions in ITR forms, system development needs, and TDS credit reflections. This… Read More »

Charitable Trust Registration: Rejection of Application Remanded for One Final Opportunity to Assessee. Issue: Whether the Commissioner (Exemption) should be directed to grant a final opportunity to a charitable trust to provide requisite details and substantiate the genuineness of its activities, even after initially rejecting its application for registration due to non-compliance with notices. Facts:… Read More »

Filing of Audit Report in Form 10B is Directory, Not Mandatory, for Section 11 Exemption. Issue: Whether the requirement to file the audit report in Form 10B before the due date, as per Rule 12A(1)(b) of the Income-Tax Rules, 1962, is mandatory or directory in nature for claiming exemption under Section 11 of the Income-tax… Read More »