Renewal under Sections 12AB and 80G Cannot Be Rejected Based on Pre-2021 Search Materials Issue Whether the Principal Commissioner can reject an application for renewal of registration under Section 12AB and approval under Section 80G by relying on past search/investigation materials prior to 01-04-2021, rather than confining the enquiry to the activities and compliance of… Read More »
Addition of Entire Unaccounted Stock Sales Upheld; Penalty Under Section 271(1)(c) Sustained as GP Rate Inapplicable Addition of Entire Unaccounted Stock Sales Upheld; Penalty Under Section 271(1)(c) Sustained as GP Rate Inapplicable Issue Whether the addition of the entire value of unaccounted sales (uncovered during an Excise survey) was justified when raw material costs were… Read More »
Section 72A Disallowance Inapplicable as Restructuring Consideration Paid in Cash Was Not a Demerger Under Section 2(19AA) Issue Whether the provisions of Section 72A(4) regarding the allocation and carry-forward of unabsorbed losses in a demerger can be invoked when a court-approved restructuring scheme involves transfer of assets/liabilities for cash consideration rather than issuance of shares… Read More »
Supreme Court Dismisses SLP Upholding High Court Order Setting Aside Perverse ITAT Relief on Bogus Share Loss Supreme Court Dismisses SLP Upholding High Court Order Setting Aside Perverse ITAT Relief on Bogus Share Loss Issue Whether the Supreme Court should interfere with the High Court’s order setting aside the Tribunal’s decision, where the High Court… Read More »
Supreme Court Dismisses SLP Against Deletion of Penalty Arising From Ambiguous Notice Supreme Court Dismisses SLP Against Deletion of Penalty Arising From Ambiguous Notice Issue Whether a penalty levied under Section 271(1)(c) read with Section 274 is legally sustainable when the statutory show-cause notice fails to specify the specific charge by not striking off the… Read More »
DTVSV Refunds Must Be Issued Within 90 Days and Operational Delays Do Not Justify Inaction DTVSV Refunds Must Be Issued Within 90 Days and Operational Delays Do Not Justify Inaction Issue Whether the Revenue can delay processing and crediting a refund due under Form No. 4 of the Direct Tax Vivad Se Vishwas Scheme, 2024,… Read More »
Peak Credit Method Is Applicable to Book Entries Outside Regular Accounts for Estimating Undisclosed Income Issue Whether the peak credit method can be applied to estimate undisclosed income from unrecorded book entries, rather than summing all credit entries without accounting for debits. Facts The case pertains to Assessment Year 2022–23 under the Income-tax Act, 1961.… Read More »
Income Defaulting Under IDS 2016 Assessed as Unexplained Money Under Section 69A Upheld by Supreme Court Income Defaulting Under IDS 2016 Assessed as Unexplained Money Under Section 69A Upheld by Supreme Court Issue Whether income brought to tax due to default under the Income Declaration Scheme (IDS), 2016 is assessable as unexplained money under Section… Read More »
Section 263 Revision Remanded for Verification as Assessment Order Was Based on Pre-Demerger Financial Statements Issue Whether a Section 263 revision order passed to set aside an assessment based on pre-demerger financial statements is valid, and whether an assessee is legally required to file a fresh revised return based on audited post-demerger accounts following an… Read More »
Deduction for Encumbrance Clearance Payment Allowed as AO Conducted Enquiry and PCIT Revision Unjustified Issue Whether the PCIT was justified in invoking Section 263 revisionary powers when the Assessing Officer (AO) had conducted inquiries, applied his mind, and taken a plausible view allowing a deduction under Section 48 for clearing a property encumbrance. Whether the… Read More »