Reassessment Beyond Four Years Without Addition On Recorded Reasons Is Invalid And Lacks Jurisdiction Issue Whether reassessment proceedings initiated beyond four years from the end of the relevant assessment year are valid when the Assessing Officer makes no additions in respect of the reasons recorded for reopening, particularly in light of Explanation 3 to Section… Read More »
Section 35(2AB) R&D deduction cannot be denied merely because DSIR approval was granted in a subsequent assessment year. Issue Whether an assessee is entitled to weighted deduction under Section 35(2AB) for in-house R&D expenditure from the current assessment year when the application was submitted during the relevant year but formal DSIR approval was granted in… Read More »
Conditioning Remand on Onerous Cost Default Clause Violates Natural Justice and Renders Appeal Illusionary Issue Whether the Tribunal can make the revival of an appeal—remanded due to natural justice violations—subject to an automatic confirmation default clause for non-payment of onerous costs. Facts Assessment Year: AY 2018-19. Ex Parte Assessment: The Assessing Officer passed an ex… Read More »
Pr. CIT cannot invoke Section 263 revision without conducting independent enquiry or proving assessment order erroneous. Issue Whether a revision order passed under Section 263 by the Pr. CIT can be sustained when the Assessing Officer (AO) had already verified the issues during assessment and the Pr. CIT failed to conduct an independent enquiry or… Read More »
Provision for discount created using a scientific method and fully discharged in subsequent years is allowable business expenditure. Provision for discount created using a scientific method and fully discharged in subsequent years is allowable business expenditure. Issue Whether a provision for discount created on a scientific basis and subsequently fully discharged constitutes an allowable business… Read More »
Revenue Appeal Dismissed As Monetary Threshold Below CBDT Limits Applies Retroactively To Pending Matters Issue Whether an Income Tax Appeal filed by the Revenue before the High Court is maintainable when the disputed tax value is below the revised monetary threshold of ₹2 crores prescribed by the CBDT Circular dated 17 September 2024. Facts Appeal… Read More »
Supreme Court Dismisses Revenue SLP As Revision Under Section 263 Requires Independent Proof Of Error And Prejudice Supreme Court Dismisses Revenue SLP As Revision Under Section 263 Requires Independent Proof Of Error And Prejudice Issue Whether a revision order passed under Section 263 is valid when the tax authority fails to independently record and establish… Read More »
Cooperative Society Entitled To Section 80P Deduction And Full Additional Depreciation On Milk Processing Equipment Issue Whether a cooperative society engaged in milk procurement is entitled to deduction under Section 80P(2)(d) on interest/dividend income earned from investments in other cooperative entities. Whether milk cans and related equipment qualify as plant and machinery eligible for additional… Read More »
Addition Under Section 68 Deleted as Penny Stock Finding Lacked Independent Enquiry and Transacted via Bank and Demat Issue Whether an addition under Section 68 treating long-term capital gains from share transactions as non-genuine penny stock gains can be sustained when based solely on Investigation Wing reports without independent verification by the Assessing Officer. Facts… Read More »
Depreciation Claim Allowed for Vehicle Paid For and Used by Company Despite Registration in Director’s Name Issue Whether a company is entitled to claim depreciation under Section 32 of the Income-tax Act, 1961 on a vehicle purchased and used for its business, when the funds were paid by the company but the registration stands in… Read More »