Sole Executor Administering Deceased Estate Must Be Assessed as an Individual at Normal Slab Rates Issue Whether the income of a deceased person’s estate administered by a sole executor should be assessed in the hands of the executor as an individual at normal slab rates under Section 168, rather than as an Artificial Juridical Person… Read More »
Inadvertent Filing of Form 10-IF Under Section 115BAD Allows Recomputation of Taxable Income Under Old Regime Inadvertent Filing of Form 10-IF Under Section 115BAD Allows Recomputation of Taxable Income Under Old Regime Issue Whether a co-operative society that mistakenly exercised the option under Section 115BAD by filing Form 10-IF is entitled to have its taxable… Read More »
LTCG Exemption and Commission Additions for Penny Stocks Cannot Stand Without Direct Evidence Against Assessee Issue Whether the Assessing Officer is justified in treating long-term capital gains (LTCG) from share sales as unexplained cash credit under Section 68 and adding 3% estimated commission under Section 69C based solely on generic Investigation Wing reports regarding penny… Read More »
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 »
A Registered Sale Deed Constitutes a Valid Transfer Under Section 2(47), Attracting Capital Gains Tax Despite Claims of Coercion Issue Whether the execution of a registered sale deed constitutes a valid “transfer” under Section 2(47) attracting capital gains under Section 45 of the Income-tax Act, 1961, despite the assessee’s claims of non-receipt of consideration, coercion,… Read More »
Reassessment notice and proceedings against a deceased person are invalid when the legal representative promptly objects to jurisdiction. Issue Whether reassessment proceedings initiated under Section 148 against a deceased assessee—and subsequent notices or orders passed thereunder—can be sustained under Section 159 of the Income-tax Act, 1961 / Section 302 of the Income-tax Act, 2025 when… Read More »
Reopening notice issued beyond the surviving limitation period under TOLA and Ashish Agarwal directives is invalid. Reopening notice issued beyond the surviving limitation period under TOLA and Ashish Agarwal directives is invalid. Issue Whether a reassessment notice issued under Section 148 on 20.08.2022 for Assessment Year 2014–15 is time-barred and invalid for being issued beyond… Read More »
Notional interest cannot be taxed under mercantile system when debt recovery is improbable due to financial distress. Issue Whether notional interest can be added to the income of an assessee following the mercantile system of accounting on outstanding balances recoverable from debtor concerns whose financial position has severely deteriorated. Facts Accounting Method: The assessee-firm followed… Read More »
Revaluation of existing leasehold rights without cash inflow or new asset acquisition cannot be taxed under Section 69. Issue Whether the revaluation of an existing tenancy/leasehold right by a firm, without acquiring any new asset, paying consideration, or introducing funds, can be treated as an unexplained investment under Section 69 of the Income-tax Act, 1961… Read More »
An allotment letter constitutes an agreement under Section 56(2)(x) proviso if consideration was fixed and paid via banking channels. Issue Whether an unregistered allotment letter can constitute an “agreement fixing the amount of consideration” under the first proviso to Section 56(2)(x) of the Income-tax Act, 1961 / Section 92 of the Income-tax Act, 2025, thereby… Read More »