Penalty Under Section 270A Unreasonable Where Income Subject To TDS Disclosed Under Section 148 Return Issue Whether penalty for under-reporting or misreporting under Section 270A is sustainable when a salaried taxpayer, acting under a bona fide belief, discloses her entire income (subject to TDS except a small bank interest amount) in response to a Section… Read More »
PCIT Cannot Invoke Section 263 for Reverification When AO Throroughly Examined DVO Valuation and Property Sale Issue Whether the Principal Commissioner of Income Tax (PCIT) can validly exercise revisional powers under Section 263 to set aside an assessment order for reverification, when the Assessing Officer (AO) had already examined the sale of flats, called for… Read More »
Reversal of Bad Debt Provision and Overdue NPA Interest Held Non-Taxable, Rule 6ABA Remanded for Re-examination Issue Whether the release/reversal of an NPA provision transferred to the Profit & Loss account can be taxed under Section 41(1) as a remission or cessation of trading liability. Whether deduction under Section 36(1)(viia) read with Rule 6ABA is… Read More »
Ex-Parte Order Set Aside and Disputed Issue Remitted to CIT(A) for Fresh Adjudication After Hearing Issue Whether the ex-parte order passed by the CIT(A) confirming the assessment addition under Section 147 read with Section 144 should be set aside and remitted back to the CIT(A) to provide the assessee one more opportunity of hearing to… Read More »
Ex-Parte Assessment Remanded to Provide Assessee Fresh Opportunity of Hearing Under Principles of Natural Justice Ex-Parte Assessment Remanded to Provide Assessee Fresh Opportunity of Hearing Under Principles of Natural Justice Issue Whether an ex-parte assessment order under Section 144 and penalty under Section 271(1)(c) should be set aside and remanded for fresh adjudication when the… Read More »
Derivative Contract Value Cannot Be Closing Stock Nor Can Prior Year Opening Balances Be Taxed Under Section 69A Issue Whether derivative “sauda” (contract) value can be treated as closing stock to inflate capital, and whether Section 69A can be invoked to tax opening capital balances representing previous year closing balances as unexplained money. Facts The… Read More »
Expenditure Incurred for Trust Out of Its Collected Funds Cannot Be Added as Unexplained Investment Under Section 69 Expenditure Incurred for Trust Out of Its Collected Funds Cannot Be Added as Unexplained Investment Under Section 69 Issue Whether Tally entries recording student fee collections handled and spent by trustees on behalf of a trust can… Read More »
Recharacterization of Capital Gains as Dividend With Reduced Tax Liability Does Not Warrant Penalty Under Section 270A Issue Whether initiation of penalty proceedings under Section 270A for under-reporting or misreporting of income is legally sustainable when the recharacterization of capital gains into dividend income by the Assessing Officer results in no increase in total assessed… Read More »
No Additions Can Be Made Under Section 153A in Unabated Search Assessments Without Incriminating Material Issue Whether the Assessing Officer is legally justified in making an addition under Section 68 in a search assessment completed under Section 153A for an unabated/completed assessment year, in the absence of any incriminating material seized during the Section 132… Read More »
Immunity Under Section 270AA Requires Reconsideration Where Rectification Order Erased Tax Demand and Created Refund Issue Whether an Assessing Officer can reject an application for immunity from penalty under Section 270AA on the ground of non-payment of original tax demand when a subsequent rectification order under Section 154 completely eliminated the demand, resulted in a… Read More »