Section 270A Penalty Cannot Survive Quashed Quantum Assessments Or Additions Sustained On Estimated Basis Issue Survival of Section 270A Penalty upon Quashing of Quantum Assessment: Whether a penalty levied under Section 270A for under-reporting of income can be sustained when the underlying quantum assessment order itself is quashed on legal grounds by the Tribunal. Levy… Read More »
Estimated Addition On Suppressed Professional Receipts Based On Third-Party Statements Without Account Rejection Is Unsustainable Issue Validity of Reassessment Addition Based on Estimation: Whether an addition made on account of alleged suppression of professional receipts—calculated purely on estimated hospital consultation charges and manager statements without rejecting the assessee’s books of account or bringing independent corroborative… Read More »
PCIT Can Revise Faceless Assessment Orders Where AO Fails To Enquire Into Unverified Claims Issue Jurisdiction under Section 263 over Faceless Assessment Orders: Whether a Principal Commissioner of Income Tax (PCIT) has the legal authority under Section 263 to revise an assessment order passed under Section 144B by the National Faceless Assessment Centre (NaFAC). Validity… Read More »
Agricultural Land Within Statutory Distance of Tambaram Municipality Constitutes Capital Asset, On-Money Restricted to Admitted Cash, and 70% Indexed Cost Allowed Issue Capital Asset Determination: Whether land located within 4.45 km of Tambaram Municipality (population exceeding 1.65 lakh) qualifies as a capital asset under Section 2(14)(iii)(b), making the gains arising from its sale taxable under… Read More »
Cash deposits previously taxed or covered by amnesty schemes cannot be subjected to double taxation. Issue Whether cash deposits can be taxed as unexplained money under Section 69A in a subsequent year if a portion of the amount has already been taxed in a preceding assessment year or declared under an amnesty scheme. Whether the… Read More »
Insurance compensation adjusted against business loss cannot be separately taxed, and consequential concealment penalty fails. Issue Whether insurance compensation received for fire damage to commercial stock and interiors, already adjusted against the actual loss in the books, can be separately taxed under section 45(1A) or section 28. Whether a penalty levied for concealment of income… Read More »
Reopening scrutiny assessment after four years without fresh material or failure to disclose is impermissible. Issue Whether the Assessing Officer can legally reopen a completed scrutiny assessment under section 147 after the expiry of four years solely to reclassify software expenses as capital assets, in the absence of any new tangible material or any allegation… Read More »
Nil Transfer Pricing Adjustment Remanded and Enhanced Section 80JJAA Deduction Granted Nil Transfer Pricing Adjustment Remanded and Enhanced Section 80JJAA Deduction Granted Issue Issue I (Transfer Pricing): Whether a Transfer Pricing Officer (TPO) can sustain an Arm’s Length Price (ALP) of “Nil” for Global IT services once the assessee furnishes critical additional evidence on appeal… Read More »
Additional Evidence on Transfer Pricing and Enhanced Gross Income Merit Re-evaluation of Deductions Additional Evidence on Transfer Pricing and Enhanced Gross Income Merit Re-evaluation of Deductions Issue Whether a Transfer Pricing Officer (TPO) can sustain an Arm’s Length Price (ALP) of “Nil” for IT services once the assessee submits fresh, comprehensive cost allocation and service… Read More »
Official revenue classifications and specific statutory distance notifications override administrative presumptions regarding agricultural land taxation. Issue Whether the revenue department can deny a tax exemption under Section 10(37) on capital gains from the compulsory acquisition of land by relying on localized reports of non-cultivation, when official state revenue records explicitly classify the land as agricultural… Read More »