Section 148 Reassessment Notice for AY 2015-16 Quashed as Barred by Ten-Year Limitation Period Issue Whether the assessment year relevant to the previous year in which a search is conducted must be included when reckoning the extended ten-year limitation period under Section 149 read with Explanation 1 to Section 153A/153C, rendering a Section 148 notice… Read More »
Assessment Order Passed Within Extended Statutory Limit Is Valid as Draft Order and Hearing Procedures Were Complied With Assessment Order Passed Within Extended Statutory Limit Is Valid as Draft Order and Hearing Procedures Were Complied With Issue Whether the assessment order for AY 2020-21 passed on 28.09.2022 was time-barred, and whether the non-issuance of a… Read More »
Unrecorded Sales Gross Profit Estimate Deleted As Assessing Officer Failed To Formally Reject Books Unrecorded Sales Gross Profit Estimate Deleted As Assessing Officer Failed To Formally Reject Books Issue Whether the Assessing Officer can legally estimate a firm’s gross profit on unrecorded sales without formally rejecting its books of account under section 145(3) or invoking… Read More »
Reassessment notice issued on or after April 1, 2021 for AY 2015-16 is time-barred and quashed. Issue Whether an income escaping assessment notice issued under Section 148 on or after April 1, 2021, relating to Assessment Year 2015-16, is barred by limitation and liable to be set aside. Facts The Assessee filed a writ petition… Read More »
Section 148 notice issued by a Jurisdictional Assessing Officer instead of the NFAC is legally invalid. Issue Whether a notice issued under Section 148 by a Jurisdictional Assessing Officer (JAO), instead of the National Faceless Assessment Centre (NFAC) as mandated by the CBDT Notification dated 29-3-2022, is valid and sustainable in law. Facts The Assessee… Read More »
Reassessment is validly initiated under Section 143(1), but interest on earmarked funds reduces pre-operative expenses. Issue Whether the Assessing Officer can validly reopen an assessment under Section 147 when the original return was only processed under Section 143(1) and no formal scrutiny assessment order was passed. Whether the Income Tax Appellate Tribunal has the jurisdiction… Read More »
Suppressed Sale Consideration Must Be Taxed As Capital Gains, Not As Unexplained Money. Issue Whether an undisclosed receipt toward a property sale, found during a third-party search, must be taxed as part of the full value of consideration under Capital Gains in the year of transfer, or if it can be treated as unexplained money… Read More »
Policy servicing fees to aggregators are allowable deductions, and Section 14A disallowance is inapplicable to insurance businesses. Issue Whether payments made by a general insurance company to aggregators/intermediaries for policy servicing and support activities can be disallowed under Explanation 1 to Section 37(1) as an expense prohibited by law, in the absence of any penal… Read More »
Assessee gets refund interest until actual payment as AO cannot unilaterally decide on exclusions Issue Whether an assessee is entitled to interest under Section 244A up to the actual date of payment when delays arise from subsequent bank account validation errors, and whether the Assessing Officer (AO) has the jurisdiction to unilaterally exclude any delay… Read More »
Section 80G and 80JJAA Deductions Allowed; Platform Enhancement and Delayed Form 67 Procedural Defect Resolved Issue Whether a deduction under Section 80G can be denied solely because the underlying donation forms a part of the company’s mandatory Corporate Social Responsibility (CSR) expenditure. Whether a legitimate claim for Foreign Tax Credit (FTC) can be rejected purely… Read More »