Tag Archives: IN THE ITAT LUCKNOW BENCH

Reopening based solely on CBDT directions without independent Assessing Officer satisfaction is void ab initio.

By | September 23, 2026
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Reopening based solely on CBDT directions without independent Assessing Officer satisfaction is void ab initio. Issue Whether a reassessment notice issued under Section 148 is legally valid when it is based solely on a CBDT instruction directing the reopening of cases involving invalid returns, without any independent satisfaction of the Assessing Officer regarding escapement of… Read More »

CIT(A) can consider fresh claims arising from typographical errors under Section 154 to tax real income.

By | September 22, 2026
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CIT(A) can consider fresh claims arising from typographical errors under Section 154 to tax real income. Issue Whether the Commissioner of Income Tax (Appeals) [CIT(A)] is entitled to consider fresh claims made by an assessee during an appeal against an order passed under Section 154 of the Income-tax Act, 1961, where such claims arise from… Read More »

Assessee’s contractual sharing of forex gains is non-taxable rebate and ad-hoc expenditure disallowances are reduced.

By | September 22, 2026
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Assessee’s contractual sharing of forex gains is non-taxable rebate and ad-hoc expenditure disallowances are reduced. Issue Whether foreign exchange fluctuation gains passed on to an overseas buyer under a contractual agreement qualify as an allowable business deduction/rebate under Section 37(1) of the Income-tax Act, 1961 (Section 34 of the Income-tax Act, 2025), and whether ad-hoc… Read More »

Derivative Contract Value Cannot Be Closing Stock Nor Can Prior Year Opening Balances Be Taxed Under Section 69A

By | August 13, 2026
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Derivative Contract Value Cannot Be Closing Stock Nor Can Prior Year Opening Balances Be Taxed Under Section 69A Issue Whether derivative “sauda” (contract) value can be treated as closing stock to inflate capital, and whether Section 69A can be invoked to tax opening capital balances representing previous year closing balances as unexplained money. Facts The… Read More »

Expenditure Incurred for Trust Out of Its Collected Funds Cannot Be Added as Unexplained Investment Under Section 69

By | August 12, 2026
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Expenditure Incurred for Trust Out of Its Collected Funds Cannot Be Added as Unexplained Investment Under Section 69 Expenditure Incurred for Trust Out of Its Collected Funds Cannot Be Added as Unexplained Investment Under Section 69 Issue Whether Tally entries recording student fee collections handled and spent by trustees on behalf of a trust can… Read More »

No Additions Can Be Made Under Section 153A in Unabated Search Assessments Without Incriminating Material

By | August 11, 2026
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No Additions Can Be Made Under Section 153A in Unabated Search Assessments Without Incriminating Material Issue Whether the Assessing Officer is legally justified in making an addition under Section 68 in a search assessment completed under Section 153A for an unabated/completed assessment year, in the absence of any incriminating material seized during the Section 132… Read More »

Cash Deposits by Bank Mitra and Accounted Rent Are Non-Taxable; Penalty Applies Once Per Default Category

By | August 11, 2026
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Cash Deposits by Bank Mitra and Accounted Rent Are Non-Taxable; Penalty Applies Once Per Default Category Issue Whether cash deposits in the bank account of a “Bank Mitra” representing customer transactions can be added as unexplained money under Section 69A, whether an ad hoc addition for rental income already accounted for is sustainable, and whether… Read More »

Consolidated Satisfaction Note Covering Multiple Years Invalidates Section 153C Assessment Proceedings

By | July 25, 2026
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Consolidated Satisfaction Note Covering Multiple Years Invalidates Section 153C Assessment Proceedings Issue Validity of Section 153C Assessment Proceedings Based on a Consolidated Satisfaction Note: Whether the initiation of proceedings and subsequent additions made under Section 69A (read with Section 153C) are legally valid when the Assessing Officer records a single, common satisfaction note covering multiple… Read More »

Departure in trading patterns alone during demonetization cannot justify a section 68 addition without rejecting the books of account.

By | July 9, 2026
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Departure in trading patterns alone during demonetization cannot justify a section 68 addition without rejecting the books of account. Issue Whether a sudden surge or change in trading patterns during the demonetization period can by itself justify an addition of cash deposits as unexplained cash credit under section 68 of the Income-tax Act, 1961, when… Read More »

Reassessment order is invalid as a mere change of opinion on already examined cash deposits.

By | July 4, 2026
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Reassessment order is invalid as a mere change of opinion on already examined cash deposits. Issue Whether the reassessment proceedings and subsequent addition under section 69A of the Income-tax Act, 1961 were valid when the specific issue of cash deposits had already been examined and accepted during the original assessment under section 143(3). Facts For… Read More »