Section 263 Revision Is Invalid Where Restricting Bogus Purchase Addition To 12.5% Is Plausible Issue Validity of Section 263 Revision on Plausible Disallowance Views: Whether the Principal Commissioner of Income Tax (PCIT) can invoke revision powers under Section 263 to demand a 100% addition under Section 69C (taxed under Section 115BBE) when the Assessing Officer… Read More »
PCIT Can Revise Faceless Assessment Orders Where AO Fails To Enquire Into Unverified Claims Issue Jurisdiction under Section 263 over Faceless Assessment Orders: Whether a Principal Commissioner of Income Tax (PCIT) has the legal authority under Section 263 to revise an assessment order passed under Section 144B by the National Faceless Assessment Centre (NaFAC). Validity… Read More »
Registration under Section 12AB cannot be cancelled retroactively, for procedural lapses, or Section 13 violations. Issue Jurisdiction under Section 12AA Post-April 1, 2021: Whether the Pr.CIT(C) had the legal power to cancel registration under Sections 12AA(3) and 12AA(4) after Section 12AA(5) rendered the section inapplicable on or after April 1, 2021. Retrospective Application of Specified… Read More »
Tribunal cannot rely on subsequent assessment order passed under Section 263 to justify PCIT’s revisionary jurisdiction. Issue Whether the Tribunal, while deciding a challenge to the PCIT’s invocation of revisionary jurisdiction under Section 263, erred in relying upon a subsequent assessment order passed pursuant to that very Section 263 direction. Facts Section 263 Revision: For… Read More »
DGCEI is a Law Enforcement Agency, Exempting Revenue Appeals From Low Tax Effect Monetary Limits Issue Whether the Directorate General of Central Excise Intelligence (DGCEI) qualifies as a law enforcement agency under paragraph 10(e) of the CBDT Circular dated 11.07.2018 (read with Circular dated 20.08.2018), thereby exempting the Revenue’s appeal from dismissal based on low… Read More »
Order Violating Interim Stay Set Aside and Remanded for Reconsideration to Ensure Fair Hearing Issue Whether an order rejecting a tax pre-deposit waiver is sustainable when passed on insufficient notice and followed by an illegal tax recovery executed by the revenue authorities in direct violation of an active High Court interim stay. Facts The petitioner-assessee… Read More »
Reassessment Is Invalid If Reasons Are Not Supplied And The Underlying Admission Was Retracted Issue Whether a reassessment under Section 147/148 is legally sustainable when the Revenue fails to supply the complete recorded reasons to the assessee and relies solely on a director’s statement that had been fully retracted prior to the issuance of the… Read More »
Reassessment Initiated After Dropping Search Proceedings Does Not Bar Relief Under Vivad Se Vishwas Scheme Reassessment Initiated After Dropping Search Proceedings Does Not Bar Relief Under Vivad Se Vishwas Scheme Issue Whether the revenue authorities can integrate dropped Section 153C search proceedings with subsequent Section 147 reassessment proceedings initiated via a Section 133A survey to… Read More »
Tribunal Justified in Allowing Valid Business Expense Claimed During Assessment Without a Revised Return Issue Whether the Tribunal was legally justified in entertaining and allowing the assessee’s claim for deduction of commission expenditure during assessment proceedings under Section 37(1), even though it was not claimed in the original return of income and no revised return… Read More »
Tax demands cannot legally subsist or be adjusted without serving a statutory Section 143(1) intimation. Issue Whether the Income Tax Department can legally raise, recover, or adjust an outstanding tax demand against a subsequent year’s refund in the absolute absence of proof that a statutory intimation under Section 143(1) was ever issued and served upon… Read More »