Commission on Sugarcane Marketing by Cooperative Society Constitutes Business Income Eligible for Section 80P Deduction. Issue: Is the commission income received by a cooperative society, engaged in marketing sugarcane produced by its members, from sugar mills on the supply of sugarcane, to be considered as income from business operations and thus eligible for deduction under… Read More »

Reassessment Order Quashed for Failure to Consider Assessee’s Timely Reply. Issue: Is a reassessment order liable to be quashed if the Assessing Officer fails to consider the assessee’s detailed reply to a show-cause notice proposing variations to income, particularly when the assessee had also requested that the reassessment proceedings be stayed pending the disposal of… Read More »

Notice Issued to Deceased Person Invalid When Legal Heir Details Available. Issue: Is a notice issued under Section 148A(b) of the Income-tax Act, 1961, for income escaping assessment, valid when it is addressed to a deceased person, and their legal heir is already registered as such with the Income Tax Department and has filed the… Read More »

I. Supply of Food Packets Subject to GST Not Contract for TDS under Section 194C. Issue: Is an assessee liable to deduct Tax Deducted at Source (TDS) under Section 194C of the Income-tax Act, 1961, on expenditure incurred for the supply of food packets to its employees, leading to a disallowance of 30% of such… Read More »

Opportunity Should Be Given Before Deeming Assessee in Default for Non-Deduction of TDS. Issue: Is it mandatory for the Assessing Officer to provide an opportunity of being heard to the assessee before holding them as an ‘assessee deemed to be in default’ under Section 201(1) of the Income-tax Act, 1961, for failing to deduct Tax… Read More »

Conditional Deposit Constitutes Prima Facie Case for Stay of Demand. Issue: When an assessee deposits 20% of the demanded tax as per the condition imposed by the Tribunal for interim protection, can it be concluded that the assessee has made out a prima facie case for a partial stay on the recovery of the remaining… Read More »

Revisionary order set aside; due verification already done by Assessing Officer. Due Verification by Assessing Officer Precludes Revisionary Order Based on Lack of Inquiry. Issue: Can the Principal Commissioner revise an assessment order under Section 263 of the Income-tax Act, 1961, on the grounds that the Assessing Officer’s acceptance of the assessee’s explanation regarding a… Read More »

Provisional registration u/s 10(23C) can not denied even if he assessee had already started its activities Technical Error in Application Does Not Justify Denial of Exemption to Genuine Institution. Issue: Can the Commissioner (Exemptions) deny final registration under Section 10(23C) of the Income-tax Act, 1961, to an institution of national importance solely on the basis… Read More »

REFUND OF EXCESS TAX PAID BY THE TAXPAYER [As amended by Finance (No. 2) Act, 2024] Many times it may happen that the taxpayer has paid excess tax as against the tax required to be paid by him. In such a case he is granted refund of the excess tax paid by him.  In this… Read More »

Types of Income Tax Return Understanding the different ITR filing categories. Original Return Filed for the first time for a financial year, within the due date. (Sec 139(1)) Belated Return Filed after the due date, but before the end of the assessment year or completion of assessment. (Sec 139(4)) Revised Return Filed to correct an… Read More »