IRS Archives - Tax Heal https://www.taxheal.com/tag/irs Complete Guide for Income Tax and GST in India Sat, 20 Jun 2026 11:25:19 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 High Court will not interfere with Appellate Tribunal’s condonation of delay unless arbitrary or perverse. https://www.taxheal.com/sushrut-arvind-dharmadhikari-cj-2.html Sat, 20 Jun 2026 11:25:19 +0000 https://www.taxheal.com/?p=134181 High Court will not interfere with Appellate Tribunal’s condonation of delay unless arbitrary or perverse. Issue Whether the High Court, exercising appellate jurisdiction, should interfere with the Appellate Tribunal’s decision to condone a 763-day delay in filing a statutory appeal by the Revenue, when the Tribunal exercised its discretion in the interest of substantial justice.… Read More »

]]>

High Court will not interfere with Appellate Tribunal’s condonation of delay unless arbitrary or perverse.

Issue

  1. Whether the High Court, exercising appellate jurisdiction, should interfere with the Appellate Tribunal’s decision to condone a 763-day delay in filing a statutory appeal by the Revenue, when the Tribunal exercised its discretion in the interest of substantial justice.

  2. Whether the Adjudicating Authority’s refusal to confirm the provisional attachment of the property under the Prohibition of Benami Property Transactions Act, 1988, stands challenged due to the condonation of delay.

Facts

  • Background: The appellant is a co-owner of Spectrum Mall and faced proceedings under the Prohibition of Benami Property Transactions Act, 1988, following an income-tax search on the second respondent.

  • Provisional Attachment: The first respondent (Initiating Officer) issued a show cause notice under Section 24(1), provisionally attached the appellant’s share in the property under Section 24(3), continued the attachment under Section 24(4), and referred the matter to the Adjudicating Authority.

  • Adjudicating Authority Ruling: The Adjudicating Authority passed an order under Section 26(3) refusing to confirm the provisional attachment, ruling that no benami transaction had occurred.

  • Appeal & Delay: The first respondent appealed this order before the Appellate Tribunal (under SAFEMA). However, there was a delay of 763 days in filing the appeal.

  • Tribunal’s Action: The Appellate Tribunal condoned the 763-day delay, satisfied with the reasons assigned by the respondents, and posted the matter for further hearing. The appellant challenged this condonation before the High Court.

Decision

  • On Interference with Discretionary Powers: Decided in favor of the Revenue. The High Court held that when an Appellate Tribunal exercises its statutory discretion to condone a delay in the interest of substantial justice, the High Court cannot interfere unless that discretion is shown to be arbitrary, perverse, or based on untenable grounds.

  • On Merits of the Delay Application: Since the appellant failed to demonstrate or place any material evidence proving that the Tribunal’s exercise of discretion was arbitrary or legally untenable, the appeal was dismissed, and the Tribunal’s condonation order was upheld.

Key Takeaways

  • Discretionary Autonomy of Tribunals: Courts show a high degree of deference to Appellate Tribunals when they exercise discretionary powers (like condonation of delay under limitation laws) to advance substantial justice.

  • High Threshold for Revision: A higher court will not substitute its own view for that of a lower forum on condonation matters unless there is a patent illegality, perversity, or complete lack of reasoning (arbitrariness).

  • Merits to be Heard Next: Condoning a delay does not mean the Revenue has won the case; it simply means the merits of whether the property transaction was “Benami” will now be openly debated and adjudicated by the Appellate Tribunal.

HIGH COURT OF MADRAS
V.S.J. Dinakaran
v.
IRS, Deputy Commissioner of Income-tax (Benami Prohibition)*
SUSHRUT ARVIND DHARMADHIKARI, CJ.
and G. Arul Murugan, J.
CMA No. 65 of 2026
CMP No. 635 of 2026†
Vijay Narayan, Senior Counsel and M.G. Pranava Charan for the Appellant. Mrs. M. Sheela, Senior Standing Counsel and H. Siddarth, Junior Standing Counsel for the Respondent.
JUDGMENT
1. Calling into question the legality and veracity of the order dated 16.12.2025 passed by the Appellate Tribunal under SAFEMA, condoning the delay of 763 days in filing the appeal after the expiry of period of limitation, the present appeal is filed.
2. Short facts relevant for disposal of this appeal are as under:
2.1. It is averred that the appellant is one of the co-owners of Spectrum Mall, which was a joint venture between Ganga Foundations Pvt. Ltd and the other owners. During the month of November, 2017, a search was conducted by the Income Tax Department in the premises of the appellant, consequent to a search in the case of second respondent.
2.2. It is stated that, during the course of search, the appellant was questioned about the sale of his share in the Spectrum Mall to the second respondent. Since the appellant had no idea about the entire transaction, the appellant has merely refused to comment on the same.
2.3. The appellant thereafter received notices under Section 153C of the Income Tax Act, 1961 for the Assessment Years 201213 to 2017-18. In the show cause notice for the assessment year 2017-18, the Assessing Officer, relying on the material seized from the office of Ganga Foundations Pvt. Ltd and the sworn statements recorded thereunder, has proceeded to construe as if the appellant has received a sum of Rs.18 Crores towards the sale of his share in the Spectrum Mall to the second respondent and the Assessing Officer proposed to tax the said amount as advance forfeited under Section 56(2)(ix) of the Income Tax Act.
2.4. On the basis of the aforesaid material, it is stated that a show cause notice dated 01.11.2019 under Section 24(1) of the Prohibition of Benami Property Transactions Act, 1988 was issued by the first respondent alleging that the appellant is a “benamidar” for the identified beneficial owner viz., the second respondent, with respect to his share in Spectrum Mall. An order of provisional attachment was also made under Section 24(3) of the Prohibition of Benami Property Transaction Act, 1988.
2.5. It is averred that though the appellant has furnished a detailed reply, without considering the reply and without following the principles of natural justice, the first respondent passed the order continuing attachment under Section 24(4) of the Prohibition of Benami Property Transaction Act, 1988 and made a reference to the Adjudicating Authority to conduct the adjudication proceedings under Section 26(3) of the Prohibition of Benami Property Transaction Act, 1988.
2.6. It is stated that pursuant to the orders passed by this Court in the earlier round of litigation, the Adjudicating Authority considered the reply of the appellant, passed the order under Section 26(3) of the Prohibition of Benami Property Transaction Act, 1988 and refused to confirm the order of attachment made under Section 24(3) holding that there is no “benami transaction”.
2.7. It is stated that thereafter the first respondent preferred the statutory appeal before the Appellate Tribunal with a delay of 763 days in filing the appeal. Though the appellant submitted a detailed reply, the Appellate Tribunal has condoned the delay and has posted the matter for further hearing along with a batch of cases. Hence, the present appeal.
3.1. Shri Vijay Narayan, learned Senior Counsel appearing on behalf of the appellant, submitted that though the first respondent did not provide sufficient case for the towering delay of 763 days, the Tribunal condoned the delay exceeding two years. He further submitted that administrative excuses like field work, searches, transfer and retirement of successive Initiating Officers do not constitute “sufficient cause”.
3.2. It is further submitted that, as per the provisions of the Prohibition of Benami Property Transaction Act, 1988, 45 days is the time limit for filing the appeal, whereas, in the case on hand, the appeal has been filed with a delay of 763 days, without showing sufficient cause and, therefore, the Tribunal ought not to have condoned the delay considering the merits of the case or interest of the State. The perceived strength of the appeal cannot be taken as a basis for condoning the delay, in the absence of there being any sufficient cause.
3.3. To fortify the aforesaid submissions, learned Senior Counsel for the appellant placed heavy reliance on the latest decision of the Supreme Court in Shivamma v. Karnataka Housing Board and others 2025 SCC OnLine SC 1969.
4.1. Per contra, learned Standing Counsel appearing on behalf of the first respondent, submitted that the Tribunal, after hearing both parties and upon consideration of the detailed explanation, exercised its discretion and condoned the delay on being satisfied that sufficient cause had been shown and such finding of the Tribunal does not warrant any interference.
4.2. It is further submitted that the delay occurred due to bona fide administrative circumstances beyond the control of the department. The Tribunal, being the statutory fact finding appellate authority, examined the explanation and exercised its discretion to condone the delay.
4.3. Relying on a decision of the Supreme Court in Vinod Gandhi v. The District Collector, Madurai [SLP (C) No.4337 of 2025, dated 22-1-2026] it is submitted that the interest of the State should not be made to suffer on account of procedural or administrative circumstances arising in the discharge of official functions. It is further submitted that while procedural discipline is important, a pragmatic and justice-oriented approach must be adopted where public interest is involved, and that the overall circumstances and consequences of refusing condonation must be carefully weighed.
5. Learned Senior Counsel appearing for the appellant, in reply, submitted that the decision of the Supreme Court in Vinod Gandhi case, referred supra, pertains to condonation of long delay in filing a review petition. The said decision was rendered on the specific facts involved, whereas the decision in Shivamma case, referred supra, applies on all fours to the case on hand and in the light of the law enunciated in the said decision, the order of the Appellate Tribunal is to be set aside.
6. We have heard learned counsel for the parties and perused the order passed by the Appellate Tribunal.
7. A bare perusal of the order impugned passed by the Appellate Tribunal shows that many appeals were filed by the first respondent against the judgment of Adjudicating Authority, where the provisional attachment order was confirmed, however, in this solitary case, the provisional attachment order was not confirmed. This particular case was inadvertently lost sight of by the respondents. The Appellate Tribunal, on threadbare consideration of the case law on the issue, including the decision of the Supreme Court in Shivamma (supra), on which heavy reliance was placed by learned Senior Counsel for the appellant, condoned the delay in the interest of substantial justice for adjudicating the present appeal on the merits, as many other connected appeals between the same parties are already pending before the Appellate Tribunal.
8. Once the Appellate Tribunal, on being satisfied with the reasons assigned by the respondents herein, in the interest of substantial justice, has exercised its discretion and condoned the delay, this Court sitting in appeal over the same cannot interfere, unless the exercise of discretion was on untenable grounds or arbitrary or perverse. In the case on hand, nothing has been placed to show that the discretion was exercised on untenable grounds or such exercise of discretion was arbitrary or perverse.
9. For the foregoing reasons, the appeal is dismissed. There shall be no order as to costs. Consequently, interim application stands closed.
]]> USA IRS : Some popular tax benefits renewed for 2019 https://www.taxheal.com/usa-irs-some-popular-tax-benefits-renewed-for-2019.html https://www.taxheal.com/usa-irs-some-popular-tax-benefits-renewed-for-2019.html#respond Thu, 27 Feb 2020 14:42:45 +0000 https://www.taxheal.com/?p=83545 Some popular tax benefits renewed for 2019; IRS Publication 17 Helps with 2019 Taxes WASHINGTON ― The Internal Revenue Service reminds taxpayers that it is processing tax returns claiming benefits extended or changed by recent legislation. Most taxpayers can file when they are ready – and as they normally would – if they are eligible for one or… Read More »

]]> Some popular tax benefits renewed for 2019; IRS Publication 17 Helps with 2019 Taxes

WASHINGTON ― The Internal Revenue Service reminds taxpayers that it is processing tax returns claiming benefits extended or changed by recent legislation. Most taxpayers can file when they are ready – and as they normally would – if they are eligible for one or more of these benefits and claim them on their 2019 federal tax return.

Taxpayers can get the most out of various tax benefits and get useful tips on preparing their 2019 federal income tax returns by consulting a free, comprehensive tax guide available on IRS.gov. Publication 17, Your Federal Income Tax, features an in-depth look at on tax changes for 2019 including recent legislative changes and covers the general rules for filing a federal income tax return. It supplements the information contained in the tax form instruction booklet. This 277-page guide – available online as a PDF, HTML or eBook − also provides thousands of interactive links to help taxpayers quickly get answers to their questions.

Certain individual tax provisions extended

  • Deduction for above-the-line qualified tuition and related expenses claimed on Form 8917, Tuition and Fees Deduction
  • Deduction for mortgage insurance premiums treated as qualified residence interest, claimed on Schedule A, Itemized Deductions
  • Deduction for unreimbursed medical and dental expenses as the floor was lowered to 7.5% of adjusted gross income and claimed on Schedule A, Itemized Deductions
  • Credit for nonbusiness energy property claimed on Form 5695, Residential Energy Credits
  • Income exclusion for canceled debt for qualified principal residence indebtedness where the taxpayer defaulted on a mortgage that they took out to buy, build or substantially improve their main home claimed on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness

Kiddie Tax modification

Recent legislation also modified the rules related to what’s commonly called the “Kiddie Tax” for certain children who may be able to calculate their tax based on the tax rate of the child’s parent. For tax year 2019, taxpayers can elect this alternative application for the tax on their unearned income by completing Form 8615, Tax for Certain Children Who Have Unearned Income, differently depending on their election. See the Form 8615 instructions for Part II Tax for more information. Taxpayers who make this election for 2019 must include a statement with their return specifying “election to modify tax of unearned income.” The statement can be made on the return (for example, on line 7 or at the top of Form 8615) or on an attachment filed with the return.

Disaster tax relief

Disaster tax relief was also enacted for those affected by certain Federally declared disasters. This includes an increased standard deduction based on qualified disaster losses and an election to use 2018 earned income to figure the 2019 earned income credit and additional child tax credit.

Certain taxpayers affected by federally declared disasters may be eligible for an automatic 60-Day extension for filing, paying their taxes, and other administrative deadlines.

Special rules may apply for taxpayers who received a distribution from an individual retirement arrangement, profit-sharing plan or retirement plan and their main home was in one of the federally declared disaster areas eligible for these special rules.

Amended returns

Three tax laws were enacted on Dec. 20, 2019. The Taxpayer Certainty and Disaster Tax Relief Act of 2019 extended certain previously expired tax benefits to 2018 and 2019 and provided tax relief for certain incidents federally declared as disasters in 2018 and 2019. The extended benefits and the disaster relief may now be claimed on 2018 and 2019 tax returns, by those who qualify.

The Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act) made other changes, such as increasing the penalty for failing to file a tax return and modifying the rules related to the taxation of unearned income of certain minor children. The SECURE Act relaxed certain retirement plan contribution and distribution requirements beginning Jan. 1, 2020.

While the IRS has released the vast majority of tax year 2019 products, the IRS must also update 2018 tax products affected by these legislative changes. Taxpayers may have to file an amended return to claim these benefits on their 2018 return. See Form 1040-X, Amended U.S. Individual Income Tax Return, and its instructions at IRS.gov/Form1040X. Impacted 2018 forms, instructions and schedules are being revised to reflect the legislation enacted Dec. 20, 2019. The updated 2018 revisions will be posted to IRS.gov for taxpayers to file amended returns accurately.

The IRS works closely with tax professionals and partners in the tax return preparation and tax software industries to prepare for and address issues that may occur during the filing season. This ongoing collaboration ensures that taxpayers can continue to rely on the IRS, tax professionals and tax software programs when it’s time to file their returns. As always, filing electronically and choosing direct deposit is the fastest, most accurate and most convenient way to receive a tax refund.

]]> https://www.taxheal.com/usa-irs-some-popular-tax-benefits-renewed-for-2019.html/feed 0 USA IRS :Taxpayers use direct deposit for tax refunds https://www.taxheal.com/usa-ird-taxpayers-use-direct-deposit-for-tax-refunds.html https://www.taxheal.com/usa-ird-taxpayers-use-direct-deposit-for-tax-refunds.html#respond Thu, 27 Feb 2020 14:35:15 +0000 https://www.taxheal.com/?p=83542 why taxpayers should be using direct deposit for tax refunds Here’s why taxpayers should be using direct deposit for tax refunds With the filing season just around the corner, taxpayers should be aware of the benefits of using direct deposit for refunds. It’s easy, secure and the fastest way to get a tax refund. Here… Read More »

]]> why taxpayers should be using direct deposit for tax refunds

Here’s why taxpayers should be using direct deposit for tax refunds

With the filing season just around the corner, taxpayers should be aware of the benefits of using direct deposit for refunds. It’s easy, secure and the fastest way to get a tax refund.

Here are 10 quick facts about direct deposit.

  • It’s the best and fastest way for taxpayers to get their tax refund.
  • It’s free.
  • It’s secure.
  • Taxpayers can deposit their refund into not only one, but also two or three accounts.
  • Combining direct deposit with IRS e-file is the fastest way for taxpayers to receive their refund.
  • When using direct deposit, there’s no risk of having a paper check stolen or lost.
  • The IRS uses the same system to deposit tax refunds that Social Security and Veterans Affairs use to deposit benefits into millions of accounts.
  • It’s easy. Just follow the instructions in the tax software or on the tax form.
  • Taxpayers can use direct deposit even if they are filing by paper.
  • Direct deposit saves taxpayers money. It costs the IRS more than $1 for every paper refund check issued, but only a dime for each direct deposit made.

More information:
Direct Deposit
Direct Deposit Limits
Where’s My Refund

]]> https://www.taxheal.com/usa-ird-taxpayers-use-direct-deposit-for-tax-refunds.html/feed 0 2019 IRS Nationwide Tax Forums : Registration Link for tax professionals https://www.taxheal.com/2019-irs-nationwide-tax-forums-registration-link.html https://www.taxheal.com/2019-irs-nationwide-tax-forums-registration-link.html#respond Thu, 16 May 2019 01:06:59 +0000 https://www.taxheal.com/?p=80276 2019 IRS Nationwide Tax Forums The IRS reminds tax professionals to sign up for this summer’s 2019 IRS Nationwide Tax Forums. Tax professionals attending can earn up to 19 continuing education credits. The forums are three-day events featuring presentations by tax experts from the IRS and association partners. Topics on important tax issues currently facing… Read More »

]]> 2019 IRS Nationwide Tax Forums

The IRS reminds tax professionals to sign up for this summer’s 2019 IRS Nationwide Tax Forums. Tax professionals attending can earn up to 19 continuing education credits.

The forums are three-day events featuring presentations by tax experts from the IRS and association partners. Topics on important tax issues currently facing tax professionals include cybersecurity, changes to the tax law, and ethics. Attendees have access to the Case Resolution Program and dozens of exhibitors. They also have the opportunity to hear directly from IRS Commissioner Chuck Rettig, who is scheduled to deliver the keynote speech at all the forums.

Tax professionals can visit www.irstaxforum.com for more information and to register.

There are five IRS Nationwide Tax Forums in cities across the country. Each Forum features more than 40 seminars and workshops.
 
The IRS Nationwide Tax Forums are designed specifically for tax professionals, including:

  • Enrolled agents
  • Certified public accountants
  • Certified financial planners
  • Annual Filing Season Program participants
  • Uncredentialled tax professionals
  • Here are the dates, locations and registration deadlines for the five forums this year:
  • National Harbor, Maryland, near Washington, D.C. – July 9-11
    • Registration deadline: June 25
  • Chicago – July 23-25 
    • Registration deadline: July 9
  • New Orleans – Aug 6-8
    • Registration deadline: July 23
  • Orlando – Aug 13-15 
    • Registration deadline: July 30
  • San Diego – Sept. 17-19
    • Registration deadline: Sept. 3

Tax professionals who pre-register by June 15, 2019 will receive an early bird rate of $235 per person. The standard rate of $255 is available starting June 16, and ends two weeks prior to the start of each forum. Attendees registering on-site or after the deadlines will pay $370.

Other IRS News 

]]> https://www.taxheal.com/2019-irs-nationwide-tax-forums-registration-link.html/feed 0 Taxpayer Advocate Service (TAS) in USA https://www.taxheal.com/taxpayer-advocate-service-tas-in-usa.html https://www.taxheal.com/taxpayer-advocate-service-tas-in-usa.html#respond Tue, 14 May 2019 05:38:03 +0000 https://www.taxheal.com/?p=80202 The Taxpayer Advocate Service (TAS) What is TAS? TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights. How Can You Learn About Your Taxpayer Rights? The Taxpayer… Read More »

]]> The Taxpayer Advocate Service (TAS)

What is TAS?

TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights.

How Can You Learn About Your Taxpayer Rights?

The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.

What Can TAS Do For You?

TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:

  • Your problem is causing financial difficulty for you, your family, or your business;
  • You face (or your business is facing) an immediate threat of adverse action; or
  • You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at TaxpayerAdvocate.IRS.gov/Contact-Us. You can also call them at 877-777-4778.

How Else Does TAS Help Taxpayers?

TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to them at IRS.gov/SAMS.

TAS also has a website, Tax Reform Changes, which shows you how the new tax law may change your future tax filings and helps you plan for these changes. The information is categorized by tax topic in the order of the IRS Form 1040. Go to TaxChanges.us for more information.

Low Income Taxpayer Clinics (LITCs)

LITCs are independent from the IRS. LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. To find a clinic near you, visit TaxpayerAdvocate.IRS.gov/LITCmap or see IRS Pub. 4134, Low Income Taxpayer Clinic List.

Other IRS News

]]> https://www.taxheal.com/taxpayer-advocate-service-tas-in-usa.html/feed 0