Tag Archives: Income tax Officer

Surrendered Advances in Seized Diary Lacking Specific Details Do Not Constitute Undisclosed Income Under Section 271AAB

By | September 12, 2026
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Surrendered Advances in Seized Diary Lacking Specific Details Do Not Constitute Undisclosed Income Under Section 271AAB Issue Whether an amount surrendered under Section 132(4) based on vague diary notings of advances constitutes “undisclosed income” under the Explanation to Section 271AAB to attract a 10% penalty when no corresponding undisclosed asset, money, or corroborative evidence was… Read More »

Conditional Stay Orders Relying Mechanically on 20% Deposit Guidelines Are Unsustainable and Remanded for Independent Decision

By | September 12, 2026
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Conditional Stay Orders Relying Mechanically on 20% Deposit Guidelines Are Unsustainable and Remanded for Independent Decision Conditional Stay Orders Relying Mechanically on 20% Deposit Guidelines Are Unsustainable and Remanded for Independent Decision Issue Whether an authority deciding a stay application under Section 220(6) must independently exercise its discretionary powers rather than mechanically relying on CBDT… Read More »

Rectification Under Section 154 Must Delete Duplicate Addition When Same Cash Deposit Is Assessed in Successor’s Hands

By | September 12, 2026
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Rectification Under Section 154 Must Delete Duplicate Addition When Same Cash Deposit Is Assessed in Successor’s Hands Issue Whether an addition of unexplained cash deposit under Section 69A can be retained in the hands of a dissolved firm under a Section 154 rectification proceeding, when the exact same cash deposit has already been assessed and… 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 »

Reopening of assessment is unjustified as optional partnership deed clauses do not mandate paying partner interest or remuneration.

By | September 12, 2026
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Reopening of assessment is unjustified as optional partnership deed clauses do not mandate paying partner interest or remuneration. Issue Whether the mere incorporation of discretionary or amended clauses in a partnership deed regarding interest on capital and partners’ remuneration signifies that such amounts were mandatorily payable to the partner. Whether reopening of the individual partner’s… Read More »

Unexplained cash deposit addition under Section 69A restricted to Rs. 13.10 lakhs based on cash flow verification.

By | September 11, 2026
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Unexplained cash deposit addition under Section 69A restricted to Rs. 13.10 lakhs based on cash flow verification. Issue Whether cash deposits aggregating to Rs. 25.71 lakhs in the HDFC Bank account of the assessee during the period 17-05-2016 to 06-08-2016 are treatable as unexplained money under Section 69A, or if the addition should be restricted… Read More »

Capital gains from building redevelopment belong to members, making additions under society’s PAN unjustified.

By | September 11, 2026
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Capital gains from building redevelopment belong to members, making additions under society’s PAN unjustified. Issue Whether capital gains arising from a building redevelopment contract executed by a cooperative housing society can be taxed in the hands of the society merely because transactions were registered under its PAN, when rights and consideration belong exclusively to individual… Read More »

Transfer pricing adjustments apply strictly to associated enterprise dealings, with profit margins determined by operational items.

By | September 11, 2026
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Transfer pricing adjustments apply strictly to associated enterprise dealings, with profit margins determined by operational items. Issues Whether Transfer Pricing (TP) adjustments under Chapter X can be applied at the entity level or must be restricted strictly to international transactions with Associated Enterprises (AEs). What principles govern the inclusion or exclusion of specific income and… Read More »

Date of transfer determines capital gains accrual, preventing substitution of subsequent higher transaction pricing.

By | September 11, 2026
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Date of transfer determines capital gains accrual, preventing substitution of subsequent higher transaction pricing. Issue Whether an assessee is entitled to deduction under Section 10AA when deduction claims were disallowed by the Assessing Officer for non-compliance and lack of documentary evidence, but partly allowed by the CIT(A) without seeking a remand report or verifying submissions… Read More »

Unexplained Expenditure Addition Under Section 69C Deleted as Bearer Cheque Source Was Verified From Bank Account

By | September 10, 2026
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Unexplained Expenditure Addition Under Section 69C Deleted as Bearer Cheque Source Was Verified From Bank Account Issue Whether an addition under Section 69C for unexplained expenditure can be sustained merely because the assessee failed to fully explain the purpose of excess bearer cheque payments, even though the source of funds was verified from the assessee’s… Read More »