No Section 14A disallowance without exempt income and premises vacation compensation is allowable revenue expenditure. Issue Whether any disallowance under Section 14A read with Rule 8D can be made in an assessment year where the assessee has earned no exempt income. Whether compensation paid by an assessee to secure vacant possession of premises taken on… Read More »
Section 263 revision is unsustainable when AO made enquiries and PCIT raised grounds beyond SCN. Issue Whether the PCIT can validly exercise revisionary powers under Section 263 to set aside an assessment where the AO had already conducted enquiries on unsecured loans, trade payables, and WIP, and where the final revision order proceeded on grounds… Read More »
Reassessment Orders Issued with Sanction from Incompetent Authority After Three Years Are Void and Unsalvageable Under Section 263 Issue Whether reassessment notices and orders issued after more than three years from the end of the relevant assessment year are legally valid when approval under Section 151 was obtained from the Principal Commissioner under clause (i)… Read More »
Investments and Advances Carried Over From Preceding Year Fully Disclosed in Books Cannot Be Addition Under Section 69 Issue Whether an addition made under Section 69 read with Section 115BBE of the Income-tax Act, 1961 as unexplained investments is sustainable when the investments and short-term loans/advances were already disclosed in audited books and carried forward… Read More »
Establishing Ownership Alone Does Not Warrant Seizure Release Pending Possession Assessment, But Third Parties Can Apply Under Section 132B Issue Whether cash seized during a search on an Angadiya firm can be released under Section 132B to a third-party owner before completion of the Angadiya firm’s assessment, and whether a third-party claimant qualifies as a… Read More »
High Court Condones 341-Day Revenue Delay and Admits Transfer Pricing Substantial Law Questions High Court Condones 341-Day Revenue Delay and Admits Transfer Pricing Substantial Law Questions Issue Whether a delay of 341 days in filing an appeal by the Revenue under Section 260A can be condoned under Section 5 of the Limitation Act when caused… Read More »
Section 14A Disallowance Cannot Exceed Exempt Income and Revenue Expenditure Is Fully Deductible In Incurred Year Issue Whether disallowance of expenditure under Section 14A of the Income-tax Act, 1961 can exceed the actual exempt income earned by the assessee during the relevant assessment year. Whether the Revenue can compel an assessee to spread over revenue… Read More »
Limitation Period for Amending Returns Does Not Bar Uploading Original Pending TDS Returns Limitation Period for Amending Returns Does Not Bar Uploading Original Pending TDS Returns Issue Whether the limitation period introduced under Section 200(3) for amending TDS returns bars an employer from uploading original pending TDS statements for periods prior to Assessment Year 2023-24,… Read More »
Reassessment Completed Without Mandatory Section 143(2) Scrutiny Notice After Filing Return Is Legally Invalid Issue Whether a reassessment completed ex-parte under Section 147 read with Sections 144 and 144B is legally sustainable when the Assessing Officer fails to issue a mandatory scrutiny notice under Section 143(2) after the assessee files a return in response to… Read More »
Section 263 revision order passed during IBC moratorium is unsustainable and stands set aside. Issue Whether a revisional order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 during the currency of a Section 14 IBC moratorium against a corporate debtor is legally sustainable. Facts Assessment History: The assessment unit completed a… Read More »