Tag Archives: Income tax Officer

Reopening Based Solely on Investigation Reports Without Verification Invalidates Assessment and Deletes Purchase Disallowances

By | July 27, 2026
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Reopening Based Solely on Investigation Reports Without Verification Invalidates Assessment and Deletes Purchase Disallowances Reopening Based Solely on Investigation Reports Without Verification Invalidates Assessment and Deletes Purchase Disallowances Issue Whether an assessment can be validly reopened under Section 148 and purchases treated as bogus when the Assessing Officer acts purely on Investigation Wing inputs without… Read More »

Cancellation Agreement and Fresh Additional Evidence Warrant Re-evaluation of Section 54F Capital Gain Exemption

By | July 27, 2026
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Cancellation Agreement and Fresh Additional Evidence Warrant Re-evaluation of Section 54F Capital Gain Exemption Issue Whether an order denying exemption under section 54F based on a development agreement should be set aside and remanded to the Assessing Officer when crucial additional evidence—including a cancellation agreement—was admitted under Rule 29 of the ITAT Rules. Facts Return… Read More »

Procedural Defect In Section 143(2) Notice Format Is Cured Under Section 292B Validating Assessment

By | July 25, 2026
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Procedural Defect In Section 143(2) Notice Format Is Cured Under Section 292B Validating Assessment Issue Curing Format Non-Conformity Under Section 292B: Whether non-conformity of a Section 143(2) notice with the format prescribed in CBDT Instruction dated 23-06-2017 (such as omitting the classification of scrutiny) invalidates the notice and vitiates the assessment, or whether it constitutes… Read More »

Section 292A Expressly Bars Granting Probation To Adult Offenders Convicted Under Income Tax Act

By | July 25, 2026
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Section 292A Expressly Bars Granting Probation To Adult Offenders Convicted Under Income Tax Act Issue Bar on Probation under Income Tax Act: Whether a trial court can release an adult offender convicted under Section 277 on probation under the Probation of Offenders Act, 1958 or Section 360 of Cr.P.C., given the express statutory bar in… Read More »

CIT(A) Cannot Set Aside Section 147 Reassessment Order as Power Is Restricted to Section 144

By | July 25, 2026
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CIT(A) Cannot Set Aside Section 147 Reassessment Order as Power Is Restricted to Section 144 CIT(A) Cannot Set Aside Section 147 Reassessment Order as Power Is Restricted to Section 144 Issue CIT(A) Jurisdiction to Remand Section 147/144B Assessments: Whether the Commissioner (Appeals) has the jurisdiction under Section 251(1)(a) to set aside an assessment order framed… Read More »

Reassessment Valid as Wealth Tax Disclosures Do Not Exempt Taxpayer From Proving Income Sources

By | July 25, 2026
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Reassessment Valid as Wealth Tax Disclosures Do Not Exempt Taxpayer From Proving Income Sources Issue Validity of Reassessment under Section 147 for Unexplained Investments: Whether a notice issued under Section 148 for unexplained investment in property (including a substantial cash component) is valid when the original return was processed only under Section 143(1), even if… Read More »

Interest Paid On Related-Party Loans Cannot Be Disallowed By Netting Trade Advances Or Adding Notional Interest

By | July 25, 2026
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Interest Paid On Related-Party Loans Cannot Be Disallowed By Netting Trade Advances Or Adding Notional Interest Issue Netting of Loan and Current Accounts under Section 40A(2): Whether the Assessing Officer (AO) can disallow interest paid on an unsecured loan from a related party by netting it against a trade advance/current account, without proving that the… Read More »

Reassessment Notice Premised On Factually Incorrect Scrip Name Is Invalid And Liable To Be Quashed

By | July 25, 2026
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Reassessment Notice Premised On Factually Incorrect Scrip Name Is Invalid And Liable To Be Quashed Reassessment Notice Premised On Factually Incorrect Scrip Name Is Invalid And Liable To Be Quashed Issue Validity of Reassessment Premised on Factually Incorrect Information: Whether a reopening notice issued under Section 148 read with Section 147 is legally sustainable when… Read More »

Reopening under Section 148 is valid if initial information indicates income escaping tax exceeds 50 lakh rupees.

By | July 24, 2026
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Reopening under Section 148 is valid if initial information indicates income escaping tax exceeds 50 lakh rupees. Reopening under Section 148 is valid if initial information indicates income escaping tax exceeds 50 lakh rupees. Issue Whether a notice issued under Section 148 after 3 years but within 5 years is valid based on initial information… Read More »

Multiple floors form one residential house under Section 54 and ad-hoc valuation rejection is invalid.

By | July 24, 2026
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Multiple floors form one residential house under Section 54 and ad-hoc valuation rejection is invalid. Issue Whether multiple reconstructed floors (basement, ground, and third floor) acquired by an assessee under a property redevelopment collaboration agreement qualify together as “one residential house” for Section 54 capital gains exemption. Whether the Assessing Officer (AO) can reject a… Read More »