Tag Archives: HIGH COURT OF BOMBAY

Additions under Section 153A deleted as no incriminating material was found during search and ownership under Section 69A remained unproven.

By | August 7, 2026
0 Comment

Additions under Section 153A deleted as no incriminating material was found during search and ownership under Section 69A remained unproven. Issue Whether additions under Section 153A can be made in an unabated assessment without any incriminating material found during the search, relying solely on pre-existing documents (Base Note) available with the Revenue. Whether Section 69A… Read More »

Exceptions to monetary limits in CBDT Letter dated 20-8-2018 do not apply retrospectively to pending appeals

By | August 6, 2026
0 Comment

Exceptions to monetary limits in CBDT Letter dated 20-8-2018 do not apply retrospectively to pending appeals Issue Whether the exceptions introduced by the CBDT letter dated 20-8-2018 modifying Circular No. 3/2018 dated 11-7-2018 apply retrospectively to pending Revenue appeals filed under section 260A before 20-8-2018. Whether a Revenue appeal filed prior to 20-8-2018 with a… Read More »

Reassessment under Section 263 is invalid when Assessing Officer conducted proper inquiry during assessment

By | August 6, 2026
0 Comment

Reassessment under Section 263 is invalid when Assessing Officer conducted proper inquiry during assessment Issue Whether a Principal Commissioner of Income Tax (PCIT) can validly invoke revisionary powers under Section 263 on grounds of lack of inquiry when the Assessing Officer (AO) had issued specific queries regarding 26AS/service tax reconciliations and accepted the assessee’s detailed… Read More »

High Court Sets Aside Order and Remands Matter to Tribunal for Deciding Section 144B Non-Compliance

By | August 5, 2026
0 Comment

High Court Sets Aside Order and Remands Matter to Tribunal for Deciding Section 144B Non-Compliance Issue Whether the Tribunal erred in confirming a 12.5% disallowance on purchases without deciding the fundamental jurisdictional issue of non-issuance of a mandatory draft show-cause notice under Section 144B(6)(xi) and without evaluating the complete documentary evidence on merits. Facts The… Read More »

Faceless assessment order passed with unnotified income additions violates natural justice and warrants quashing.

By | August 3, 2026
0 Comment

Faceless assessment order passed with unnotified income additions violates natural justice and warrants quashing. Issue Whether a final faceless assessment order passed under Section 144 read with Section 144B—making an enhanced addition significantly higher than proposed in the initial show-cause notice without offering a further opportunity of hearing—violates principles of natural justice and is liable… Read More »

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

By | August 1, 2026
0 Comment

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 »

Reassessment Initiated to Revisit Section 10AA Claim Examined in Scrutiny Is Void as a Change of Opinion

By | August 1, 2026
0 Comment

Reassessment Initiated to Revisit Section 10AA Claim Examined in Scrutiny Is Void as a Change of Opinion Reassessment Initiated to Revisit Section 10AA Claim Examined in Scrutiny Is Void as a Change of Opinion Issue Whether a reassessment notice issued under Section 148 to revisit and disallow a Section 10AA SEZ deduction—which was specifically queried,… Read More »

High Court Rejects Section 10A/80IA(10) Additions Absent Finding of Extraordinary Counterparty Profits

By | August 1, 2026
0 Comment

High Court Rejects Section 10A/80IA(10) Additions Absent Finding of Extraordinary Counterparty Profits Issue Whether additions under Section 10A(7) read with Section 80IA(10) can be sustained solely based on a transfer pricing margin comparison without establishing that transactions with counterparties yielded more than ordinary profits. Facts The assessee claimed deduction under Section 10A for the Assessment… Read More »

High Court Condones 1,797-Day Delay Caused by CA’s Inadvertent Error and Restores Tax Exemption Appeal

By | August 1, 2026
0 Comment

High Court Condones 1,797-Day Delay Caused by CA’s Inadvertent Error and Restores Tax Exemption Appeal High Court Condones 1,797-Day Delay Caused by CA’s Inadvertent Error and Restores Tax Exemption Appeal Issue Whether an inordinate delay of 1,797 days in filing an appeal before the CIT(A) should be condoned and restored for hearing on merits when… Read More »

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

By | July 30, 2026
0 Comment

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 »