Tag Archives: HIGH COURT OF GUJARAT

Reopening Barred by Limitation under Section 149 Since Corrected Escaped Income Falls Below Statutory Fifty Lakh Threshold

By | July 11, 2026
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Reopening Barred by Limitation under Section 149 Since Corrected Escaped Income Falls Below Statutory Fifty Lakh Threshold Issue Whether the Assessing Officer was legally justified in issuing a reassessment notice under Section 148 beyond the normal limitation period for an alleged income escape of Rs. 70 lakhs, when a proper evaluation of the transaction records… Read More »

Reassessment Initiated After Dropping Search Proceedings Does Not Bar Relief Under Vivad Se Vishwas Scheme

By | July 11, 2026
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Reassessment Initiated After Dropping Search Proceedings Does Not Bar Relief Under Vivad Se Vishwas Scheme Reassessment Initiated After Dropping Search Proceedings Does Not Bar Relief Under Vivad Se Vishwas Scheme Issue Whether the revenue authorities can integrate dropped Section 153C search proceedings with subsequent Section 147 reassessment proceedings initiated via a Section 133A survey to… Read More »

Reassessment Based on Scientific Warranty Provisions and Disclosed Security Deposit Forfeitures Is Quashed

By | July 11, 2026
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Reassessment Based on Scientific Warranty Provisions and Disclosed Security Deposit Forfeitures Is Quashed Reassessment Based on Scientific Warranty Provisions and Disclosed Security Deposit Forfeitures Is Quashed Issue Whether the Assessing Officer is legally justified in initiating reassessment proceedings under Section 147/148 based on a change of opinion regarding a scientifically calculated provision for warranty and… Read More »

Tribunal Justified in Allowing Valid Business Expense Claimed During Assessment Without a Revised Return

By | July 11, 2026
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Tribunal Justified in Allowing Valid Business Expense Claimed During Assessment Without a Revised Return Issue Whether the Tribunal was legally justified in entertaining and allowing the assessee’s claim for deduction of commission expenditure during assessment proceedings under Section 37(1), even though it was not claimed in the original return of income and no revised return… Read More »

Reopening Assessment Beyond Four Years Without New Tangible Material Merely Based on Change of Opinion Invalid

By | July 11, 2026
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Reopening Assessment Beyond Four Years Without New Tangible Material Merely Based on Change of Opinion Invalid Issue Whether the Assessing Officer is justified in reopening an assessment under Section 147/148 after the expiry of four years from the end of the relevant assessment year to deny a Long-Term Capital Gains exemption under Section 10(38), when… Read More »

Reassessment notice is quashed as changing depreciation rates on fully exempt income causes no tax escapement.

By | July 10, 2026
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Reassessment notice is quashed as changing depreciation rates on fully exempt income causes no tax escapement. Reassessment notice is quashed as changing depreciation rates on fully exempt income causes no tax escapement. Issue Whether the tax department can validly initiate reassessment proceedings under Section 147/148 to adjust depreciation rates when the underlying business profit is… Read More »

Writ petition is rejected since typographical errors in an SCN do not breach natural justice.

By | July 9, 2026
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Writ petition is rejected since typographical errors in an SCN do not breach natural justice. Issue Whether a writ petition under Article 226 of the Constitution of India can be entertained to quash an assessment order on grounds of natural justice violations when the alleged defects consist of a typographical error in the tax period… Read More »

Trading additions are restricted to a profit percentage when corresponding sales are accepted as genuine.

By | July 7, 2026
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Trading additions are restricted to a profit percentage when corresponding sales are accepted as genuine. Trading additions are restricted to a profit percentage when corresponding sales are accepted as genuine. Issue Whether the revenue department is legally justified in seeking a full or enhanced addition for alleged bogus purchases under Section 69 when the corresponding… Read More »

Reopening assessment based on assumptions of business incoherence from high-value bank entries is impermissible.

By | July 7, 2026
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Reopening assessment based on assumptions of business incoherence from high-value bank entries is impermissible. Reopening assessment based on assumptions of business incoherence from high-value bank entries is impermissible. Issue Whether the revenue department can legally initiate reassessment proceedings under Section 148 based on assumptions that high-value bank transactions are incoherent with business activity, when all… Read More »

Revisional order passed without granting requested personal hearing is legally unsustainable and must be remanded.

By | July 6, 2026
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Revisional order passed without granting requested personal hearing is legally unsustainable and must be remanded. Issue Whether the Principal Commissioner of Income Tax (PCIT) was legally justified in rejecting a revision application under Section 264 of the Income-tax Act, 1961, without granting the assessee a requested personal hearing and dealing with the contentions cursorily, despite… Read More »