Penalty and Recovery Notices Issued on a Set-Aside Assessment Order Are Illegal and Invalid Issue Whether penalty and recovery notices issued on the basis of an original assessment order—which was set aside by an appellate authority with directions for fresh assessment—are legally valid when the fresh assessment proceedings are still pending. Facts The Assessing Officer… Read More »
Addition for unexplained loan deleted as identity proven, while undervaluation matter remanded for agreement verification. Issue Unexplained Investments (Section 69): Whether an addition made by the AO under Section 69 on account of an unexplained loan investment is liable to be deleted when the assessee furnished the lender’s PAN, loan confirmation letter, and bank statements… Read More »
Penalty Under Section 270A Is Valid for Non-Filing Under Section 139(1) Even if Returned Income Is Accepted Post-Notice Under Section 148 Issue Whether penalty under Section 270A(2)(b) for under-reporting of income is leviable where an assessee fails to file a return of income under Section 139(1) but subsequently files a return in response to a… Read More »
Judicial review of Look Out Circular is limited unless the decision relies on speculative material. Issue Whether a Look Out Circular (LOC) issued by the Income-tax Department against a director based on alleged undisclosed foreign assets and financial irregularities can be quashed through judicial review under the 2017 Office Memorandum. Facts The assessee, a director… Read More »
Revenue must lead positive evidence to establish disputed transactions before shifting burden onto assessee Issue Whether reassessment proceedings under Section 148 should be dropped at the initial stage when an assessee pleads identity theft and denies involvement in high-value transactions. Whether the burden of proof rests on the Revenue to establish through positive evidence that… Read More »
Assessment Set Aside as Failure to Provide Mandatory Faceless Personal Hearing Violates Principles of Natural Justice Issue Whether an assessment order passed under Section 144B of the Income-tax Act, 1961 (Section 273 of the Income-tax Act, 2025) is legally sustainable when the Assessing Officer fails to grant a personal hearing through video conference despite an… Read More »
Prosecution for Delayed Tax Payment Unreasonable Without Mens Rea When Full Liability with Interest Is Settled Prosecution for Delayed Tax Payment Unreasonable Without Mens Rea When Full Liability with Interest Is Settled Issue Whether criminal prosecution under Section 276C(2) for willful attempt to evade tax can be sustained when an assessee merely delays payment… Read More »
Section 87A rebate is available against tax on short-term capital gains under section 111A. Issue Whether a resident individual governed by the default tax regime under section 115BAC(1A) is entitled to a tax rebate under section 87A against the tax payable on short-term capital gains chargeable under section 111A, provided their total income does not… Read More »
Income Tax Exemption Notification for Statutory Bodies and Authorities Under Section 10(46) SECTION 10(46) OF THE INCOME-TAX ACT, 1961, READ WITH SECTION 536 OF THE INCOME-TAX ACT, 2025 – EXEMPTIONS – STATUTORY BODY/AUTHORITY/BOARD/COMMISSION – NOTIFIED BODY OR AUTHORITY NOTIFICATION S.O. 3596(E) [NO. 73 /2026/F. NO. 300196/32/2021-ITA-I], DATED 2-7-2026 Whereas, section 10 (46) of the Income-tax Act, 1961 (43… Read More »
Dismissal of writ appeal upheld as no mandamus lies to compel time-barred reassessment action. Issue Whether a writ of mandamus under Article 226 of the Constitution of India can be issued to compel the Income Tax authorities to act on a Tax Evasion Petition and initiate reassessment proceedings when the statutory limitation period under Section… Read More »