Tag Archives: Assistant Commissioner of Income-tax

Retrospective Insertion Of Section 147A Validates Jurisdiction Of JAO To Initiate And Conduct Reassessment Proceedings

By | August 19, 2026
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Retrospective Insertion Of Section 147A Validates Jurisdiction Of JAO To Initiate And Conduct Reassessment Proceedings Retrospective Insertion Of Section 147A Validates Jurisdiction Of JAO To Initiate And Conduct Reassessment Proceedings Issue Whether, in view of the retrospective insertion of Section 147A by the Finance Act, 2026 with effect from April 1, 2021, the Jurisdictional Assessing… Read More »

SLP Dismissed As Reassessment Cannot Be Initiated Based Solely On Bank Debit-Credit Entries Without Evidence Of Escaped Income

By | August 19, 2026
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SLP Dismissed As Reassessment Cannot Be Initiated Based Solely On Bank Debit-Credit Entries Without Evidence Of Escaped Income Issue Whether reassessment under Section 148 read with Section 148A can be sustained when initiated solely on high-value bank debit and credit entries, despite the assessee explaining all banking transactions with complete documentary evidence and no cash… Read More »

Expenditure On Minor Repairs, Consumables, And Written-Off Vendor Advances Allowable As Business Revenue Deduction

By | August 19, 2026
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Expenditure On Minor Repairs, Consumables, And Written-Off Vendor Advances Allowable As Business Revenue Deduction Issue Whether expenditure incurred on slotted angles, racks, and modules for existing plant maintenance constitutes revenue expenditure under Section 37(1) or capital expenditure. Whether housekeeping and consumable expenses supported by internal journal entries and shop-floor issue logs with underlying purchase invoices… Read More »

Reassessment Notices Issued Solely on M.B. Shah Commission Report Quashed Following High Court Precedent

By | August 18, 2026
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Reassessment Notices Issued Solely on M.B. Shah Commission Report Quashed Following High Court Precedent Reassessment Notices Issued Solely on M.B. Shah Commission Report Quashed Following High Court Precedent Issue Whether reassessment notices issued under Section 148 based solely on the recommendations and findings of the Justice M.B. Shah Enquiry Commission Report on illegal mining are… Read More »

Reassessment Notice Under Section 148 Based Solely on Third-Party Seized Broker Register Quashed

By | August 18, 2026
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Reassessment Notice Under Section 148 Based Solely on Third-Party Seized Broker Register Quashed Reassessment Notice Under Section 148 Based Solely on Third-Party Seized Broker Register Quashed Issue Whether a reassessment notice under Section 148 alleging unexplained money under Section 69A for payment of “on-money” on land purchase can be sustained when based solely on a… Read More »

Recharacterisation of CCDs as Equity Set Aside and Bad Debt Write-Off Allowed

By | August 18, 2026
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Recharacterisation of CCDs as Equity Set Aside and Bad Debt Write-Off Allowed Issue Whether the Transfer Pricing Officer (TPO) can re-characterise Compulsorily Convertible Debentures (CCDs) as equity instruments prior to conversion to determine the Arm’s Length Price (ALP) of interest at Nil under the ‘Other Method’ instead of evaluating the CUP Method. Whether bad debts… Read More »

Assessment Order and Demand Quashed as Denial of Opportunity Created Jurisdictional Infirmity Warranting Writ Remedy

By | August 17, 2026
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Assessment Order and Demand Quashed as Denial of Opportunity Created Jurisdictional Infirmity Warranting Writ Remedy Issue Whether a writ petition under Article 226 of the Constitution of India is maintainable against an assessment order passed with fundamental procedural defects and denial of a fair opportunity of hearing, despite the availability of an alternative statutory appellate… Read More »

Mechanical Approval Under Section 153D Without Application of Mind Invalidates Search Assessments

By | August 15, 2026
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Mechanical Approval Under Section 153D Without Application of Mind Invalidates Search Assessments Issue Whether an assessment order passed under Section 153C read with Section 143(3) is legally valid when the statutory approval required under Section 153D was granted in a mechanical manner without application of mind, and whether the curable-defect provisions of Section 292BC apply… Read More »

Reassessment Cannot Be Sustained Where Reduction in Work-in-Progress Decreases Taxable Profit Without Escapement

By | August 13, 2026
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Reassessment Cannot Be Sustained Where Reduction in Work-in-Progress Decreases Taxable Profit Without Escapement Reassessment Cannot Be Sustained Where Reduction in Work-in-Progress Decreases Taxable Profit Without Escapement Issue Whether reassessment proceedings under Section 147/148 are legally sustainable when an alleged higher valuation of closing Work-in-Progress (WIP) actually increases taxable income rather than causing income escapement, and… Read More »

Irrecoverable VAT/CST Refunds and Valid Debt Write-Offs Are Allowable Deductions Under Income-Tax Act

By | August 11, 2026
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Irrecoverable VAT/CST Refunds and Valid Debt Write-Offs Are Allowable Deductions Under Income-Tax Act Issue Whether write-offs of irrecoverable VAT/CST refunds and trade debts with proper accounting entries constitute allowable deductions under Sections 28/37(1) or 36(1)(vii), and whether Section 14A interest disallowance applies when own interest-free funds exceed investments. Facts Issue I (Write-off of VAT/CST Refund):… Read More »