Delay in Filing CIT(A) Appeal Bona Fide Due to Pending Revision Order; Remanded for Fresh Hearing on Merits Issue Whether a delay of 608 days in filing a first appeal under Section 250 before the CIT(A) ought to be condoned, and the matter remanded for fresh adjudication on merits, where the assessee was bona fide… Read More »
Failure to Issue Section 143 Notice and Unsubstantiated Section 68 Addition Invalidates Reassessment Order Issue Whether a reassessment completed under Section 147 without issuing a mandatory notice under Section 143(2), after the assessee filed a return in response to a Section 148 notice, is bad in law and liable to be quashed ab initio. Whether… Read More »
Penalties Paid to Stock Exchanges and Penalty on Health and Education Cess Claimed Pre-Retrospective Amendment Deleted Issue Whether payments made to stock exchanges for operational lapses (e.g., bad delivery, short delivery, client code modification) are allowable business expenditures under Section 37(1) or hit by Explanation 1 as penalties for violation of law. Whether penalty under… Read More »
Revenue cannot invoke Section 179 against public company directors by lifting veil based on shareholding. Issue Whether Revenue can invoke Section 179 against a director of a registered public limited company by lifting the corporate veil merely due to concentrated shareholding and absence of public participation. Whether liability under Section 179(1) can be fastened on… Read More »
Penalty Under Sections 270A and 271AAD Quashed Due to Vague Notice and Invalid Assessment Order Issue Whether penalties levied under Section 270A(9) and Section 271AAD can be sustained when the show-cause notice lacked specific sub-clauses, Section 271AAD was misapplied to search-seized cash, and the underlying assessment was passed without following mandatory procedures under Section 143(3)… Read More »
Disclosed Opening Balances and Wealth-Tax Records Fully Explain Cash and Jewellery Found During Search Disclosed Opening Balances and Wealth-Tax Records Fully Explain Cash and Jewellery Found During Search Issue Whether cash and jewellery seized during a search under Section 132 can be treated as unexplained under Section 69A when supported by accepted opening cash balances,… Read More »
Payment Made on First Working Day Post Bank Holiday Entitles Trust/Company to Employee PF/ESI Deduction Payment Made on First Working Day Post Bank Holiday Entitles Trust/Company to Employee PF/ESI Deduction Issue Whether an Assessing Officer can disallow employee PF/ESI contributions under Section 36(1)(va) when the payment delay was solely due to bank holidays (Saturday and… Read More »
Absence of Live Nexus and Compliance with Pre-2021 PF Rules Invalidates Section 148 Reassessment Notice Issue Whether a reassessment notice under Section 148 is valid when the third-party statement lacks a live nexus with the assessee’s share capital transaction, and when late employee PF/ESIC deposits (paid before the Section 139 return due date) did not… Read More »
TDS Credit Must Be Allowed to Deductee Reflected in Form 26AS Absent Rule 37BA Declaration Issue Whether TDS credit must be granted under Section 199 read with Rule 37BA to the deductee in whose name tax was deducted and reported in Form 26AS, even if the corresponding fixed deposit interest income was clubbed in the… Read More »
Post-Search Reassessment For Preceding Years Must Be Initiated Under Section 148, Not Section 143(2) Post-Search Reassessment For Preceding Years Must Be Initiated Under Section 148, Not Section 143(2) Issue Whether an assessment for a year preceding the search year (for searches initiated on or after 01.04.2021) can be validly conducted under Section 143(3) via a… Read More »