Tag Archives: Assistant Commissioner of Income-tax

Multiple tax issues resolved: Share allotment without cash inflow escapes Section 56(2)(viib), non-deduction disallowances clarified, and bad debt write-offs upheld.

By | September 1, 2026
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Multiple tax issues resolved: Share allotment without cash inflow escapes Section 56(2)(viib), non-deduction disallowances clarified, and bad debt write-offs upheld. Issues Whether Section 56(2)(viib) applies to share allotments made without cash inflow as consideration for acquiring a business. Whether write-off of unrecovered fees/interest previously offered to tax is deductible as bad debt under Section 36(1)(vii).… Read More »

Reopening Notice Based on Predated Third-Party Seized Entries Lacking Live Nexus to Assessee Is Unjustified

By | August 29, 2026
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Reopening Notice Based on Predated Third-Party Seized Entries Lacking Live Nexus to Assessee Is Unjustified Issue Whether a reopening notice under section 148 for alleged unexplained on-money investment under section 69 is legally sustainable when based solely on third-party seized records that lack a live nexus to the assessee. Facts Property Acquisition: The assessee, along… Read More »

By | August 29, 2026
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Interest Disallowance Remanded for Verification While Section 40(a)(ia) and Land Conversion Charge Disallowances are Upheld Issue Whether interest on borrowed capital for work-in-progress requires verification, whether section 40(a)(ia) applies to paid amounts, and whether land conversion charges/interest qualify for business expenditure or capital allowances. Facts Interest on Borrowed Capital: For AYs 2009-10 to 2010-11, the… Read More »

Reassessment Notice Based on Unrelated Third-Party Broker Register Without Live Nexus Is Invalid

By | August 21, 2026
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Reassessment Notice Based on Unrelated Third-Party Broker Register Without Live Nexus Is Invalid Reassessment Notice Based on Unrelated Third-Party Broker Register Without Live Nexus Is Invalid Issue Whether a reassessment notice under Section 148, alleging unrecorded “on-money” payments on a land purchase, can be sustained when it relies solely on a third-party broker’s market survey… Read More »

Reopening Notice Under Sanction of Principal Commissioner Instead of Specified Joint Commissioner Under Section 151(2) Is Void

By | August 21, 2026
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Reopening Notice Under Sanction of Principal Commissioner Instead of Specified Joint Commissioner Under Section 151(2) Is Void Reopening Notice Under Sanction of Principal Commissioner Instead of Specified Joint Commissioner Under Section 151(2) Is Void Issue Whether a reassessment notice issued under Section 148 for AY 2015-16, deemed to be within four years under Section 3… Read More »

Inordinate Seven-Year Delay In Filing Appeal Cannot Be Condoned Merely On Counsel Ill-Health Grounds

By | August 20, 2026
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Inordinate Seven-Year Delay In Filing Appeal Cannot Be Condoned Merely On Counsel Ill-Health Grounds Inordinate Seven-Year Delay In Filing Appeal Cannot Be Condoned Merely On Counsel Ill-Health Grounds Issue Whether an inordinate delay of 2,415 days (nearly seven years) in filing a tax appeal under Section 260A can be condoned on grounds of counsel’s ill-health… Read More »

Reopening Assessment Without New Tangible Material Amounts To Invalid Change Of Opinion

By | August 20, 2026
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Reopening Assessment Without New Tangible Material Amounts To Invalid Change Of Opinion Reopening Assessment Without New Tangible Material Amounts To Invalid Change Of Opinion Issue Whether reopening an assessment under Section 147 based on an Investigation Wing report is legally sustainable when no new tangible material was discovered and the original assessment under Section 143(3)… Read More »

Transfer Pricing Adjustments Restricted, Foreign Travel Disallowance Quashed, And Carbon Credit Sale Held Capital Receipt

By | August 20, 2026
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Transfer Pricing Adjustments Restricted, Foreign Travel Disallowance Quashed, And Carbon Credit Sale Held Capital Receipt Issue Whether transfer pricing adjustments for corporate guarantee commission and loan interest rate should be restricted based on precedents set in the assessee’s own case. Whether an ad hoc disallowance of foreign travel expenses is sustainable when the assessee voluntarily… Read More »

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 »