Tag Archives: Income tax Officer

Additions under Sections 69A and 56(2)(x) are unsustainable when consideration is adjusted against prior mortgage liabilities, guideline values are disputed without independent evidence, and cash deposit explanations are rejected without objective verification.

By | August 6, 2026
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Additions under Sections 69A and 56(2)(x) are unsustainable when consideration is adjusted against prior mortgage liabilities, guideline values are disputed without independent evidence, and cash deposit explanations are rejected without objective verification. Additions under Sections 69A and 56(2)(x) are unsustainable when consideration is adjusted against prior mortgage liabilities, guideline values are disputed without independent evidence,… Read More »

Foreign exchange fluctuation loss on capital-purpose ECB restatement is capital in nature and non-deductible.

By | August 6, 2026
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Foreign exchange fluctuation loss on capital-purpose ECB restatement is capital in nature and non-deductible. Issue Whether foreign exchange fluctuation loss arising on the year-end restatement of an External Commercial Borrowing (ECB) utilized for capital purposes is deductible as revenue business expenditure under section 37(1). Facts The assessee-company availed an External Commercial Borrowing (ECB) from its… Read More »

Pending Rectification Appeal Does Not Bar Reassessment Under Section 148 Based On Fresh Section 135A Information

By | August 5, 2026
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Pending Rectification Appeal Does Not Bar Reassessment Under Section 148 Based On Fresh Section 135A Information Pending Rectification Appeal Does Not Bar Reassessment Under Section 148 Based On Fresh Section 135A Information Issue Whether the issuance of a reassessment notice under Section 148 based on independent information received under Section 135A is jurisdictionally barred or… Read More »

Unexplained Investment Additions Based on Dumb Search Documents and Insight Portal Summaries Are Invalid

By | August 5, 2026
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Unexplained Investment Additions Based on Dumb Search Documents and Insight Portal Summaries Are Invalid Issue Whether an addition under Section 69 for alleged cash “on-money” payment is sustainable when based on a dumb document from a third-party search that mentions neither the assessee’s name nor any explicit cash receipt. Whether a reassessment notice issued under… Read More »

Reassessment Beyond Three Years Under Section 148 Void Without Establishing Section 149(1)(b) Conditions

By | August 5, 2026
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Reassessment Beyond Three Years Under Section 148 Void Without Establishing Section 149(1)(b) Conditions Reassessment Beyond Three Years Under Section 148 Void Without Establishing Section 149(1)(b) Conditions Issue Whether a reassessment notice issued under Section 148 beyond the three-year limitation period is legally valid when the Assessing Officer fails to demonstrate that seized materials directly relate… Read More »

Circle rate applies for capital gains deemed consideration and Section 54F applies to JDA flats subject to construction completion verification

By | August 5, 2026
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Circle rate applies for capital gains deemed consideration and Section 54F applies to JDA flats subject to construction completion verification Circle rate applies for capital gains deemed consideration and Section 54F applies to JDA flats subject to construction completion verification Issue Whether the Assessing Officer was justified in adopting the Joint Development Agreement (JDA) contract… Read More »

Where Section 11(6) bars depreciation, capital expenditure applies as income, but pre-operative expenses cannot be deferred.

By | August 5, 2026
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Where Section 11(6) bars depreciation, capital expenditure applies as income, but pre-operative expenses cannot be deferred. Issue Whether an assessee-trust disallowed from claiming depreciation under Section 11(6) is entitled to claim the actual capital expenditure incurred during the year as application of income under Section 11. Whether charitable organizations can defer pre-operative expenditure to be… Read More »

Provisional registration benefits apply only during pending assessments, but unregistered entities can deduct business expenses.

By | August 5, 2026
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Provisional registration benefits apply only during pending assessments, but unregistered entities can deduct business expenses. Issue Whether the benefit of the second proviso to Section 12A(2) extends to prior assessment years when provisional registration is granted after summary processing under Section 143(1) without active assessment proceedings pending before the Assessing Officer. Whether an entity denied… Read More »

Accumulation under Section 11(2) is permissible for specific revenue purposes aligned with trust objects.

By | August 5, 2026
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Accumulation under Section 11(2) is permissible for specific revenue purposes aligned with trust objects. Issue Whether accumulation of income under Section 11(2) of the Income-tax Act, 1961 is restricted only to capital expenditure/long-term projects, or if it can also be allowed for specific revenue purposes that align with the objects of the trust. Facts The… Read More »

Unauthenticated Power of Attorney and gross negligence preclude condonation of an extraordinary 2376-day appeal delay.

By | August 4, 2026
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Unauthenticated Power of Attorney and gross negligence preclude condonation of an extraordinary 2376-day appeal delay. Unauthenticated Power of Attorney and gross negligence preclude condonation of an extraordinary 2376-day appeal delay. Issue Whether an inordinate delay of 2376 days in filing an appeal can be condoned under Section 254 when supported only by an unnotarized, inadmissible… Read More »