Tribunal Cannot Decide Appeal Ex-Parte On Merits Without Verifying Proper Service Of Hearing Notice Tribunal Cannot Decide Appeal Ex-Parte On Merits Without Verifying Proper Service Of Hearing Notice Issue Whether the Income Tax Appellate Tribunal (ITAT) can proceed ex-parte and decide an appeal on merits without confirming that a notice of hearing was duly issued… Read More »
Four-Year Delay In Recording Satisfaction Note Invaluates Search Proceedings Under Section 153C Four-Year Delay In Recording Satisfaction Note Invaluates Search Proceedings Under Section 153C Issue Whether initiation of search assessment proceedings under Section 153C against a third party is legally sustainable when there is an unexplained delay of over four years between the search execution… Read More »
Reassessment Cannot Be Initiated On Mere Suspicion Without Information Indicating Escapement Of Recorded Business Income Reassessment Cannot Be Initiated On Mere Suspicion Without Information Indicating Escapement Of Recorded Business Income Issue Whether reassessment under Section 148 can be initiated on the basis of a Suspicious Transaction Report (STR) flagging high-value transactions, when all transactions are… Read More »
Notice Under Section 143(2) Is Not Mandatory In Reassessment Proceedings As Section 147/148 Forms A Separate Code Issue Whether non-issuance and non-service of a notice under Section 143(2) during reassessment proceedings under Sections 147/148 invalidates the reassessment order, or whether Section 147/148 acts as a separate code for assessing escaped income where a Section 143(2)… Read More »
Fair Market Value Of JDA Built-Up Area Determines Consideration; Disallowance Of Interest Expenditure Is Impermissible With Sufficient Interest-Free Funds Issue Whether, for computing business income under a Joint Development Agreement (JDA) where land converted into stock-in-trade is exchanged for constructed area, the “full value of consideration” is to be determined based on the Fair Market… Read More »
Revision under Section 264 cannot be invoked to amend a return after the statutory time limit expires. Issue Whether a taxpayer who failed to claim a statutory deduction/tolerance limit under Section 43CA in their original return, and did not file a revised return within the prescribed statutory period, can seek to amend their income/tax liability… Read More »
Reassessment Order Based on Mere Suspicion Without Materials Countering Assessee’s Documented Explanations Quashed Issue Whether a reassessment notice under Section 148 and order under Section 148A(3) based on Suspicious Transaction Reports (STRs) can be sustained when the Assessing Officer fails to substantively deal with the assessee’s supporting documents and possesses no material indicating bogus transactions… Read More »
Gain From Repurchase of Unexercised Vested Stock Options Is Taxable as Capital Gains, Not Salary Perquisite Issue Whether the consideration received by an employee upon the repurchase of vested stock options—which were never exercised into shares—is taxable as “Capital Gains” under Section 45 or as a salary “Perquisite” under Section 17(2) of the Income-tax Act,… Read More »
No Further Disallowance Required for Cash Sales Promotion; Charter Hire and Victualling Disallowances Deleted Issue Whether any further disallowance of sales promotion, gift, and sundry expenses under Section 37(1) was warranted when the assessee had already suo motu disallowed 50% of the cash-incurred expenditure. Whether disallowance under Section 40A(2)(b) on charter hire charges paid to… Read More »
Ad-Hoc 30% Site Maintenance Expense Disallowance Reduced to 10% Due to Partial Supporting Voucher Evidence Issue Whether an ad-hoc disallowance of 30% on site maintenance expenditure was justified when the expenses were supported by internal self-made vouchers and muster rolls, or whether a lower disallowance of 10% would meet the ends of justice. Facts Business… Read More »