Employee cannot be held liable or denied credit for TDS deducted by employer but not deposited. Issue Whether an employee-assessee can be denied TDS credit and subjected to direct tax demands when the employer deducts tax at source from salary but fails to deposit it with the Central Government. Facts The assessee-employee was employed with… Read More »
Credit for TDS deducted by an employer cannot be denied to an employee merely because the employer failed to deposit it. Issue Whether an employee can be denied credit for Tax Deducted at Source (TDS) under Section 199 and subjected to a tax demand under Section 143(1) when the employer deducted the tax from the… Read More »
Where Same Assessing Officer Handles Searched Person and Third Party, Section 153C Assessment Time Limit Expires on September 30, 2021 Issue Whether Section 153C assessment proceedings for AYs 2014-15 to 2019-20 were time-barred and liable to be quashed when the Assessing Officer of the searched person and the third-party assessee was the same, and the… Read More »
Reassessment Notice Issued Without Sanction From Specified Authority Under Section 151 Is Invalid and Quashed Reassessment Notice Issued Without Sanction From Specified Authority Under Section 151 Is Invalid and Quashed Issue Whether a reopening notice issued under Section 148 for AY 2015-16 without the sanction of the specified authority under Section 151 of the Income-tax… Read More »
Addition for suppressed sales is restricted to profit element, and cash disallowances require verification. Issue Whether the entire alleged suppressed sales turnover can be taxed as income instead of restricting it to the profit element, and whether disallowance under Section 40A(3) requires payment-wise verification. Facts Assessee’s Business & Return: The assessee-firm, engaged in the production,… Read More »
SLP Dismissed as Reopening Notice Lacking Sanction from Specified Authority Under Section 151 Is Invalid Issue Whether a reassessment notice issued under Section 148 is legally sustainable when sanction for its issuance was granted by the Commissioner (Exemption) instead of the Joint Commissioner specified under Section 151 of the Income-tax Act, 1961. Facts Assessment Year:… Read More »
Reassessment Passed Under Section 147 Without First Disposing Objections by Separate Order Quashed Issue Whether a reassessment order passed under Section 147 read with Section 143(3) is legally valid when the Assessing Officer fails to dispose of the assessee’s objections to the recorded reasons for reopening by a separate speaking order prior to completing the… Read More »
Assessee’s Disclosed Receipts Settled Under MAP Cannot Attract Section 270A Penalty for Under-Reporting Income Issue Whether a penalty under Section 270A of the Income-tax Act, 1961 for under-reporting of income is sustainable when the assessee fully disclosed all material facts regarding its receipts, but the revenue taxability was subsequently agreed upon under the Mutual Agreement… Read More »
Reopening notice under Section 148 is invalid when issued without sanction from the specified authority. Issue Whether a reassessment notice issued under Section 148 of the Income-tax Act, 1961 is valid when approval was granted by the Commissioner (Exemption) instead of the Joint Commissioner specified under Section 151, considering the time relaxation provisions under TOLA,… Read More »
Refunds Arising From Appellate Orders Cannot Be Withheld Without a Section 245 Adjustment Order Issue Whether the Revenue can withhold statutory refunds arising from Tribunal orders by compelling the filing of Form 26B under Rule 31A or by citing outstanding demands against sister TANs/PAN without passing a formal set-off order under Section 245. Facts Assessee… Read More »