Tag Archives: Central

Unreconciled Search-Discovered Jewellery Constitutes Undisclosed Income Attracting 10 Percent Penalty Under Section 271AAB(1)(a)

By | September 19, 2026
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Unreconciled Search-Discovered Jewellery Constitutes Undisclosed Income Attracting 10 Percent Penalty Under Section 271AAB(1)(a) Unreconciled Search-Discovered Jewellery Constitutes Undisclosed Income Attracting 10 Percent Penalty Under Section 271AAB(1)(a) Issue Whether unreconciled jewellery found during a search under Section 132 and voluntarily declared in a revised return constitutes “undisclosed income” under the Explanation to Section 271AAB. Whether penalty… Read More »

Non-Speaking Tribunal Order with Procedural Irregularities Quashed and Remanded for Fresh Adjudication

By | September 19, 2026
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Non-Speaking Tribunal Order with Procedural Irregularities Quashed and Remanded for Fresh Adjudication Issue Whether a common order of the Tribunal vitiated by complete non-application of mind, total absence of reasoning, and serious procedural irregularities (including conflicting hearing and pronouncement dates) is liable to be quashed and remanded for fresh adjudication. Facts Section 153C Proceedings: The… Read More »

Assessment Orders Passed Without Proof of Valid Section 153D Mandatory Approval Are Void and Quashed

By | September 10, 2026
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Assessment Orders Passed Without Proof of Valid Section 153D Mandatory Approval Are Void and Quashed Issue Whether assessment orders passed under Section 153A/143(3) can be sustained when the Revenue fails to produce tangible evidence of valid prior approval under Section 153D after the assessee specifically challenges its compliance. Facts The assessee is an individual engaged… Read More »

Assessment Remanded to Re-examine Capital Gains Documents Pertaining to Sold Immovable Properties

By | August 22, 2026
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Assessment Remanded to Re-examine Capital Gains Documents Pertaining to Sold Immovable Properties Assessment Remanded to Re-examine Capital Gains Documents Pertaining to Sold Immovable Properties Issue Whether an assessment addition under Section 69 of the Income-tax Act, 1961 (Section 103 of the Income-tax Act, 2025) for unexplained investment/undisclosed capital gains should be restored to the Assessing… Read More »

Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2

By | August 11, 2026
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Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2 Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2 Issue Whether the assumption of jurisdiction under Section 153A beyond the ordinary six-year block is legally sustainable when the seized material fails to establish that… Read More »

Notional interest, clerical reporting errors, and substantiated trade payables cannot be taxed as income.

By | August 5, 2026
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Notional interest, clerical reporting errors, and substantiated trade payables cannot be taxed as income. Issue Whether notional interest calculated on interest-free business advances can be brought to tax under Section 4 of the Income-tax Act in the absence of a contractual clause or evidence of actual accrual/receipt. Whether an addition to income can be made… Read More »

Write-Off of Expired Inventory and Bad Debts Allowable as Business Expenditure Based on Verified Evidence

By | August 1, 2026
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Write-Off of Expired Inventory and Bad Debts Allowable as Business Expenditure Based on Verified Evidence Issue Whether the write-off of expired finished goods inventory and bad debts supported by physical verification and independent accounting reports are allowable deductions under Sections 37(1) and 36 of the Income-tax Act, 1961. Facts The assessee claimed a deduction for… Read More »

Write-off of Expired Inventory and Bad Debts Supported by Evidence Is Allowable

By | July 30, 2026
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Write-off of Expired Inventory and Bad Debts Supported by Evidence Is Allowable Issue Whether the write-off of expired finished goods inventory under Section 37(1) is allowable as a business expenditure when supported by physical verification and destruction norms. Whether the write-off of bad debts under Section 36 is allowable when substantiated by debtor details, sale… Read More »

Suppressed Sale Consideration Must Be Taxed As Capital Gains, Not As Unexplained Money.

By | July 17, 2026
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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 »

Section 68 Addition Based On a Third-Party Slip Stood Vitiated Due To Denied Cross-Examination

By | June 26, 2026
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Section 68 Addition Based On a Third-Party Slip Stood Vitiated Due To Denied Cross-Examination Section 68 Addition Based On a Third-Party Slip Stood Vitiated Due To Denied Cross-Examination Issue Whether an assessment order making an addition under Section 68 is legally sustainable when it relies entirely on a seized slip and a statement from a… Read More »