Reassessment notice issued on 31.08.2024 for AY 2016-17 is time-barred and quashed. Issue Whether a reassessment notice issued under Section 148 on 31.08.2024 for Assessment Year 2016-17 is barred by limitation when the six-year statutory period expired on 31.03.2023. Whether the order passed under Section 148A(d) and the consequential notice issued under Section 148 are… Read More »
Revision Order Under Section 263 Invalid Without Finding Mandatory Approval Under Section 153D Erroneous Issue Whether the PCIT can validly invoke revisionary powers under Section 263 to set aside an assessment completed under Section 153C without recording a specific finding that the prior mandatory approval granted by the JCIT under Section 153D was erroneous or… Read More »
Interim Board Settlement Applications Valid If Live Assessment Notice Pending On Filing Date Issue Whether the Interim Board for Settlement can reject a settlement application filed on or before September 30, 2021, on the ground that no assessment proceeding was pending as on January 31, 2021, even though the assessee held a live and unadjudicated… Read More »
High Court Refuses Section 260A Review as Gold Bar Value Addition Pertains Purely to Facts Issue Whether a substantial question of law arises under Section 260A of the Income-tax Act, 1961 against the Tribunal’s order upholding the Section 69A addition for unexplained gold bars found in the assessee’s locker. Facts Locker Search & Discovery: The… Read More »
Reassessment Notice Issued Beyond Statutory Limitation Period Under First Proviso to Section 149(1) Is Void Reassessment Notice Issued Beyond Statutory Limitation Period Under First Proviso to Section 149(1) Is Void Issue Whether a reassessment notice issued under Section 148 on 20.03.2024 for Assessment Year 2015-16 is barred by limitation under the first proviso to Section… Read More »
Pre-Succession Partner Withdrawals and Asset Sales Do Not Violate Section 47(xiii), Preserving Section 80-IA Deduction Eligibility Issue Whether capital withdrawals by partners and sale of shares prior to a firm’s succession into a company violate proviso (a) and (c) to Section 47(xiii), rendering the succession a taxable transfer and disentitling the successor-company from claiming deduction… Read More »
ESOP Expenditure Allowed, TP Comparable Selection Principles Benchmark Benchmarking Adjustments Clarified Issue Whether ESOP discount/expenditure is allowable as a deductible business expense under Section 37(1). Whether royalty payments, trading/manufacturing segments, IT/ITES/software support services, and digital marketing support services transfer pricing (TP) benchmarking adjustments require exclusion of functionally dissimilar companies, consideration of extraordinary events, and verification… Read More »
Uncorroborated Search Statements Cannot Sustain Additions, Section 14A Disallowance Impermissible Without Exempt Income, and Multi-Issue Assessment Matters Standardized Issue Whether an uncorroborated search statement under Section 132(4) alone can sustain tax additions. Whether disallowance under Section 14A read with Rule 8D is permissible when no exempt income is earned. Whether the Assessing Officer correctly assumed… Read More »
Addition Under Section 69A Unjustified When Bank Credit Source Is Proven And Uncorroborated Cash Receipts Unproven Addition Under Section 69A Unjustified When Bank Credit Source Is Proven And Uncorroborated Cash Receipts Unproven Issue Whether an addition under Section 69A for unexplained money can be sustained for AY 2019-20 when a bank credit of Rs. 11… Read More »
ITAT invalidates search additions based on uncorroborated digital evidence and quashes Section 143(3) assessment. Issue Whether tax additions made solely on the basis of retrieved digital evidence (pen-drive/JSK Server and WhatsApp chats) are sustainable when there are procedural flaws, lack of Section 65B compliance, absence of custody proof, and no independent corroboration. Whether additions made… Read More »