Tag Archives: IN THE ITAT KOLKATA BENCH

Ad-hoc Disallowances Without Rejection of Books Under Section 145(3) Are Unjustified and Deletable

By | November 10, 2026
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Ad-hoc Disallowances Without Rejection of Books Under Section 145(3) Are Unjustified and Deletable Issue Whether ad-hoc and estimated disallowances made by tax authorities in respect of alleged bogus purchases, sales promotion expenses, foreign travel expenses, related party professional fees/salaries under Section 40A(2), and operational cash expenses are legally sustainable without invoking Section 145(3) to reject… Read More »

Section 263 Revision Invalid On Issues Beyond Incriminating Material Uncovered During Search Proceedings

By | October 16, 2026
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Section 263 Revision Invalid On Issues Beyond Incriminating Material Uncovered During Search Proceedings Issue Whether the Principal Commissioner can validly invoke revisionary jurisdiction under Section 263 to set aside a reassessment order for lack of inquiry into TDS on transportation charges under Section 40(a)(ia), when the reopening under Section 147/148 was triggered by search materials… Read More »

Additions under Sections 68, 69D, 50CA, and 271D deleted as transactions were verified and recorded.

By | October 15, 2026
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Additions under Sections 68, 69D, 50CA, and 271D deleted as transactions were verified and recorded. Issue Unsecured Loans (Section 68): Whether additions for unsecured loans under Section 68 can be sustained when the assessee provides PAN, audited financials, confirmations, bank statements, and evidence of repayment with interest after TDS. Ad-Hoc Disallowance of Contractual Payments (Section… Read More »

Management fees earned from UAR PE are DTAA exempt and statutory book profit adjustments sustained.

By | October 15, 2026
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Management fees earned from UAR PE are DTAA exempt and statutory book profit adjustments sustained. Issue Taxability of UAR Management Fees: Whether management fees earned from Hotel Meena House Oberoi, Cairo, are exempt from tax in India under Article 24 read with Article 7 of the India-UAR DTAA based on the existence of a Permanent… Read More »

Penalty Under Section 271B Deleted as State-Funded University Exempt Under Section 10(23C)(iiiab) Needs No Tax Audit

By | October 10, 2026
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Penalty Under Section 271B Deleted as State-Funded University Exempt Under Section 10(23C)(iiiab) Needs No Tax Audit Issue Whether penalty under Section 271B can be levied on a State-funded university for failure to get its accounts audited under Section 44AB when its entire income is exempt under Section 10(23C)(iiiab). Facts Entity Status: The assessee is a… Read More »

Section 143(1)(a) adjustments made without prior show-cause notice are invalid and liable to be quashed.

By | September 23, 2026
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Section 143(1)(a) adjustments made without prior show-cause notice are invalid and liable to be quashed. Issue Whether an intimation issued under Section 143(1)(a) of the Income-tax Act, 1961 making statutory adjustments to a return of income is legally valid if passed without issuing a prior show-cause notice to the assessee. Facts Return of Income: For… Read More »

Reassessment Passed Without Pecuniary Jurisdiction and Transfer Order Under Section 127 Is Void Ab Initio

By | September 12, 2026
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Reassessment Passed Without Pecuniary Jurisdiction and Transfer Order Under Section 127 Is Void Ab Initio Issue Whether issuance of notices under Section 148 and Section 143(2) by an Assessing Officer lacking pecuniary jurisdiction renders the reassessment proceedings void ab initio. Whether failure to issue an order under Section 127 transferring jurisdiction to the Assessing Officer… Read More »

JDA Capital Gains Remanded to CIT(A) for Re-Adjudication to Evaluate Uncommunicated Property Valuation Reports

By | September 3, 2026
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JDA Capital Gains Remanded to CIT(A) for Re-Adjudication to Evaluate Uncommunicated Property Valuation Reports JDA Capital Gains Remanded to CIT(A) for Re-Adjudication to Evaluate Uncommunicated Property Valuation Reports Issue Whether it was appropriate to set aside the order of the CIT(A) confirming a capital gains assessment on a Joint Development Agreement (JDA) under Section 2(47)… Read More »

Notice Under Section 143(2) Is Not Mandatory In Reassessment Proceedings As Section 147/148 Forms A Separate Code

By | August 19, 2026
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Notice Under Section 143(2) Is Not Mandatory In Reassessment Proceedings As Section 147/148 Forms A Separate Code Issue Whether non-issuance and non-service of a notice under Section 143(2) during reassessment proceedings under Sections 147/148 invalidates the reassessment order, or whether Section 147/148 acts as a separate code for assessing escaped income where a Section 143(2)… Read More »

Executing a JDA granting construction rights alone does not constitute transfer or trigger capital gains tax.

By | August 3, 2026
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Executing a JDA granting construction rights alone does not constitute transfer or trigger capital gains tax. Issue Whether the execution of a registered Joint Development Agreement (JDA) granting construction and approval rights constitutes a “transfer” under Section 2(47)(v) of the Income-tax Act, 1961 read with Section 53A of the Transfer of Property Act, 1882, making… Read More »