Tag Archives: HIGH COURT OF GUJARAT

Reassessment notice and proceedings against a deceased person are invalid when the legal representative promptly objects to jurisdiction.

By | August 10, 2026
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Reassessment notice and proceedings against a deceased person are invalid when the legal representative promptly objects to jurisdiction. Issue Whether reassessment proceedings initiated under Section 148 against a deceased assessee—and subsequent notices or orders passed thereunder—can be sustained under Section 159 of the Income-tax Act, 1961 / Section 302 of the Income-tax Act, 2025 when… Read More »

Reopening notice issued beyond the surviving limitation period under TOLA and Ashish Agarwal directives is invalid.

By | August 10, 2026
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Reopening notice issued beyond the surviving limitation period under TOLA and Ashish Agarwal directives is invalid. Reopening notice issued beyond the surviving limitation period under TOLA and Ashish Agarwal directives is invalid. Issue Whether a reassessment notice issued under Section 148 on 20.08.2022 for Assessment Year 2014–15 is time-barred and invalid for being issued beyond… Read More »

Notional interest cannot be taxed under mercantile system when debt recovery is improbable due to financial distress.

By | August 10, 2026
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Notional interest cannot be taxed under mercantile system when debt recovery is improbable due to financial distress. Issue Whether notional interest can be added to the income of an assessee following the mercantile system of accounting on outstanding balances recoverable from debtor concerns whose financial position has severely deteriorated. Facts Accounting Method: The assessee-firm followed… Read More »

Capital contribution received from newly inducted partner via demand drafts cannot be taxed under Section 68.

By | August 10, 2026
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Capital contribution received from newly inducted partner via demand drafts cannot be taxed under Section 68. Issue Whether an addition made under Section 68 of the Income-tax Act, 1961 / Section 102 of the Income-tax Act, 2025 as an unexplained cash credit is sustainable when a partner’s capital contribution is received through demand drafts and… Read More »

Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15).

By | August 10, 2026
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Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15). Issue Whether an institution providing student transport services on commercial lines against a fee, generating recurring surpluses, is entitled to regular registration under Section 12AB as a charitable entity under Section 2(15) of the Income-tax Act, 1961 /… Read More »

Miscellaneous Application for Rectification Under Section 254 Dismissed as No Error Found in Tribunal Stay Order

By | August 6, 2026
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Miscellaneous Application for Rectification Under Section 254 Dismissed as No Error Found in Tribunal Stay Order Miscellaneous Application for Rectification Under Section 254 Dismissed as No Error Found in Tribunal Stay Order Issue Whether a Miscellaneous Application under Section 254(2) for rectification can be entertained to direct a refund or impose costs when the assessee… Read More »

Reassessment beyond four years without new tangible material is an impermissible change of opinion and liable to be quashed.

By | August 6, 2026
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Reassessment beyond four years without new tangible material is an impermissible change of opinion and liable to be quashed. Reassessment beyond four years without new tangible material is an impermissible change of opinion and liable to be quashed. Issue Whether reopening of assessment under section 147 beyond four years from the end of the relevant… Read More »

Capitalization of interest is unjustified with sufficient interest-free funds, and Section 14A disallowance cannot increase MAT book profits.

By | August 6, 2026
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Capitalization of interest is unjustified with sufficient interest-free funds, and Section 14A disallowance cannot increase MAT book profits. Capitalization of interest is unjustified with sufficient interest-free funds, and Section 14A disallowance cannot increase MAT book profits. Issue Whether interest expenditure can be capitalized under section 36(1)(iii) when the assessee possesses interest-free funds exceeding its investments… Read More »

Omission of Rule 89(4B) Without Saving Clause Invalidates Pending SCNs and Consequential GST Orders

By | August 5, 2026
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Omission of Rule 89(4B) Without Saving Clause Invalidates Pending SCNs and Consequential GST Orders Omission of Rule 89(4B) Without Saving Clause Invalidates Pending SCNs and Consequential GST Orders Issue Whether the omission of Rule 89(4B) of the CGST Rules via Notification No. 20/2024–Central Tax without a saving clause invalidates show cause notices and consequential Orders-in-Original… Read More »

Reassessment notice under Section 148 based on surmises of Section 41(1) interest waiver is invalid.

By | August 5, 2026
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Reassessment notice under Section 148 based on surmises of Section 41(1) interest waiver is invalid. Reassessment notice under Section 148 based on surmises of Section 41(1) interest waiver is invalid. Issue Whether a reassessment notice issued under Section 148 based on surmises and conjectures that the assessee might have claimed deduction for unpaid interest—which was… Read More »