Tag Archives: IN THE ITAT HYDERABAD BENCH

Immunity Under Section 270AA Requires Reconsideration Where Rectification Order Erased Tax Demand and Created Refund

By | August 7, 2026
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Immunity Under Section 270AA Requires Reconsideration Where Rectification Order Erased Tax Demand and Created Refund Issue Whether an Assessing Officer can reject an application for immunity from penalty under Section 270AA on the ground of non-payment of original tax demand when a subsequent rectification order under Section 154 completely eliminated the demand, resulted in a… Read More »

PF/ESI delays due to COVID-19 and flash-flood asset losses are allowable, while TDS delay interest is penal.

By | August 7, 2026
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PF/ESI delays due to COVID-19 and flash-flood asset losses are allowable, while TDS delay interest is penal. Issue Whether delay in remitting employees’ PF/ESI contributions due to COVID-19 lockdown restrictions warrants disallowance under Section 36(1)(va). Whether interest paid on late remittance of Tax Deducted at Source (TDS) is compensatory in nature and allowable as a… Read More »

Circle rate applies for capital gains deemed consideration and Section 54F applies to JDA flats subject to construction completion verification

By | August 5, 2026
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Circle rate applies for capital gains deemed consideration and Section 54F applies to JDA flats subject to construction completion verification Circle rate applies for capital gains deemed consideration and Section 54F applies to JDA flats subject to construction completion verification Issue Whether the Assessing Officer was justified in adopting the Joint Development Agreement (JDA) contract… Read More »

Provisional registration benefits apply only during pending assessments, but unregistered entities can deduct business expenses.

By | August 5, 2026
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Provisional registration benefits apply only during pending assessments, but unregistered entities can deduct business expenses. Issue Whether the benefit of the second proviso to Section 12A(2) extends to prior assessment years when provisional registration is granted after summary processing under Section 143(1) without active assessment proceedings pending before the Assessing Officer. Whether an entity denied… Read More »

Accumulation under Section 11(2) is permissible for specific revenue purposes aligned with trust objects.

By | August 5, 2026
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Accumulation under Section 11(2) is permissible for specific revenue purposes aligned with trust objects. Issue Whether accumulation of income under Section 11(2) of the Income-tax Act, 1961 is restricted only to capital expenditure/long-term projects, or if it can also be allowed for specific revenue purposes that align with the objects of the trust. Facts The… Read More »

Reassessment notice issued beyond three years with approval from an unauthorized authority is void ab initio.

By | August 4, 2026
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Reassessment notice issued beyond three years with approval from an unauthorized authority is void ab initio. Issue Whether a reassessment notice under Section 148 issued beyond three years from the end of the relevant assessment year with approval from the Principal Commissioner of Income Tax (PCIT), instead of the specified authority under Section 151(ii), is… Read More »

Clerical errors in Section 153D approval and unproven search cash do not invalidate assessment.

By | August 3, 2026
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Clerical errors in Section 153D approval and unproven search cash do not invalidate assessment. Issue Section 153D Approval Validity: Whether clerical defects, missing DIN, or advisory notes in a Section 153D approval letter invalidate the search assessment, and whether changing the addition section from 69 to 69A by CIT(A) violates natural justice. Unexplained Cash (Section… Read More »

CIT(A) Order Dismissing Appeal In Limine Without Requested Hearing Violates Natural Justice Requiring Remand

By | July 25, 2026
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CIT(A) Order Dismissing Appeal In Limine Without Requested Hearing Violates Natural Justice Requiring Remand Issue Violation of Natural Justice in Delay Condonation Order: Whether a dismissal order passed in limine by the CIT(A) rejecting an application for condonation of delay without granting a requested personal/virtual hearing violates principles of natural justice, requiring the matter to… Read More »

In the interest of justice, foreign bank unexplained cash credit addition is remanded for fresh consideration.

By | July 24, 2026
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In the interest of justice, foreign bank unexplained cash credit addition is remanded for fresh consideration. In the interest of justice, foreign bank unexplained cash credit addition is remanded for fresh consideration. Issue Whether the addition made under Section 68 of the Income-tax Act, 1961 towards unexplained credits in a foreign bank account should be… Read More »

Section 54F Exemption Is Allowable For All 50 Flats Received Under Pre-2015 JDA Capital Gains Assessment

By | July 24, 2026
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Section 54F Exemption Is Allowable For All 50 Flats Received Under Pre-2015 JDA Capital Gains Assessment Issue Whether an assessee who entered into a Joint Development Agreement (JDA) prior to April 1, 2015, is eligible for Section 54F deduction across all 50 residential flats received as consideration against long-term capital gains computed on the execution… Read More »