Lump-sum addition replaces full cash credit, while creditor proofs and input VAT are allowed. Lump-sum addition replaces full cash credit, while creditor proofs and input VAT are allowed. Issue Whether an addition under Section 68 read with Section 115BBE for cash deposits made during the demonetization period is justified when cash sales are recorded in… Read More »
Multiple floors form one residential house under Section 54 and ad-hoc valuation rejection is invalid. Issue Whether multiple reconstructed floors (basement, ground, and third floor) acquired by an assessee under a property redevelopment collaboration agreement qualify together as “one residential house” for Section 54 capital gains exemption. Whether the Assessing Officer (AO) can reject a… Read More »
Deposit in Capital Gains Scheme entitles Section 54 exemption, while distance of agricultural land and indexation require re-verification. Issue Whether an assessee is entitled to exemption under Section 54 when bank documentation confirms the deposit of unutilized sale proceeds into the Capital Gains Accounts Scheme. Whether the classification of agricultural land as a non-capital asset—based… Read More »
Additions for Share Application Money and Unsecured Loans Deleted as Assessee Discharged Primary Onus Issue Whether additions made under Section 68 towards share application money and unsecured loans are sustainable when the assessee produces complete documentary evidence establishing the identity, creditworthiness, and genuineness of the lenders/applicants, and where the “source of source” amendment does not… Read More »
Assessing Officer Cannot Force NAV Method Over DCF Chosen by Assessee Under Rule 11UA Assessing Officer Cannot Force NAV Method Over DCF Chosen by Assessee Under Rule 11UA Issue Whether the Assessing Officer (AO) has the statutory authority to unilaterally reject the Discounted Cash Flow (DCF) valuation method chosen by the assessee under Rule 11UA(2)… Read More »
No Penalty Under Section 271(1)(c) Can Be Sustained Without Specific Satisfaction Recorded In Assessment Order Issue Whether a penalty levied under Section 271(1)(c) on a Section 36(1)(va) disallowance for delayed deposit of employees’ PF contributions can be sustained if the Assessing Officer failed to record specific satisfaction for initiating penalty proceedings on that specific addition… Read More »
Supreme Court Covid Limitation Extension Does Not Apply to Statutory Assessment Timelines, Dismissing Revenue Application Issue Whether the extension of limitation granted by the Supreme Court owing to Covid-19 applies to statutory assessment time limits, and whether the Tribunal’s order quashing a time-barred assessment can be recalled via a miscellaneous application. Facts The Dispute Resolution… Read More »
Section 153A Assessment is Invalid Without a Search Warrant or Panchnama in the Assessee’s Name Issue Whether the Assessing Officer is legally justified in assuming jurisdiction and framing an assessment under Section 153A against an individual when the underlying search action under Section 132 was not validly initiated in that specific individual’s name. Facts The… Read More »
Hiring Receipts Are Commercial Business Income, but Publication and Staff Costs Qualify as Valid Charitable Accumulation Application Issue Whether the receipts from commercially hiring out conference and auditorium facilities constitute business income under section 11(4A) due to active property exploitation, and whether expenses on publications, printing, and administrative salaries qualify as the application of accumulated… Read More »
Assessing Officer Cannot Reject Registered Valuer’s Improvement Cost Report Without Referencing Valuation Officer Issue Whether the Assessing Officer is legally justified in completely rejecting a registered valuer’s report and treating the cost of property improvement as nil due to a lack of decades-old documentary evidence, without making a statutory reference to the Departmental Valuation Officer… Read More »