Tag Archives: Principal Commissioner of Income-tax

Revision under Section 263 is impermissible when the Assessing Officer has conducted enquiries and no specific error is identified.

By | August 7, 2026
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Revision under Section 263 is impermissible when the Assessing Officer has conducted enquiries and no specific error is identified. Issue Whether the Principal Commissioner can validly invoke revisionary jurisdiction under Section 263 on the ground of lack of in-depth verification when the Assessing Officer had already called for and examined detailed documentary evidence during assessment,… Read More »

Additions under Section 153A deleted as no incriminating material was found during search and ownership under Section 69A remained unproven.

By | August 7, 2026
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Additions under Section 153A deleted as no incriminating material was found during search and ownership under Section 69A remained unproven. Issue Whether additions under Section 153A can be made in an unabated assessment without any incriminating material found during the search, relying solely on pre-existing documents (Base Note) available with the Revenue. Whether Section 69A… Read More »

Exceptions to monetary limits in CBDT Letter dated 20-8-2018 do not apply retrospectively to pending appeals

By | August 6, 2026
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Exceptions to monetary limits in CBDT Letter dated 20-8-2018 do not apply retrospectively to pending appeals Issue Whether the exceptions introduced by the CBDT letter dated 20-8-2018 modifying Circular No. 3/2018 dated 11-7-2018 apply retrospectively to pending Revenue appeals filed under section 260A before 20-8-2018. Whether a Revenue appeal filed prior to 20-8-2018 with a… Read More »

Reassessment under Section 263 is invalid when Assessing Officer conducted proper inquiry during assessment

By | August 6, 2026
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Reassessment under Section 263 is invalid when Assessing Officer conducted proper inquiry during assessment Issue Whether a Principal Commissioner of Income Tax (PCIT) can validly invoke revisionary powers under Section 263 on grounds of lack of inquiry when the Assessing Officer (AO) had issued specific queries regarding 26AS/service tax reconciliations and accepted the assessee’s detailed… Read More »

Capitalization of interest is unjustified with sufficient interest-free funds, and Section 14A disallowance cannot increase MAT book profits.

By | August 6, 2026
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Capitalization of interest is unjustified with sufficient interest-free funds, and Section 14A disallowance cannot increase MAT book profits. Capitalization of interest is unjustified with sufficient interest-free funds, and Section 14A disallowance cannot increase MAT book profits. Issue Whether interest expenditure can be capitalized under section 36(1)(iii) when the assessee possesses interest-free funds exceeding its investments… Read More »

Revenue Appeals Below Monetary Limits Are Dismissed Absent Applicable Exceptions Under CBDT Circular 5/2024

By | August 5, 2026
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Revenue Appeals Below Monetary Limits Are Dismissed Absent Applicable Exceptions Under CBDT Circular 5/2024 Issue Whether a Revenue appeal involving a tax effect below the prescribed CBDT monetary limit can be entertained under the exception clause of Paragraph 3.1(h) of CBDT Circular No. 5/2024 when no substantial question of law arises from the Tribunal’s order.… Read More »

Supreme Court Dismisses Revenue’s SLP Against Deletion of Section 68 Penny Stock LTCG Addition Supported by Complete Documentary Evidence

By | August 5, 2026
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Supreme Court Dismisses Revenue’s SLP Against Deletion of Section 68 Penny Stock LTCG Addition Supported by Complete Documentary Evidence Supreme Court Dismisses Revenue’s SLP Against Deletion of Section 68 Penny Stock LTCG Addition Supported by Complete Documentary Evidence Issue Whether the Supreme Court should interfere with the High Court’s decision affirming the deletion of a… Read More »

State VAT department qualifies as a law enforcement agency under CBDT Circulars for monetary limits.

By | August 4, 2026
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State VAT department qualifies as a law enforcement agency under CBDT Circulars for monetary limits. Issue Whether information received from the State VAT department qualifies as information received from a “law enforcement agency” under Clause 10(e) of CBDT Circular No. 3/2018 dated 11.07.2018 read with Circular dated 20.08.2018, thereby excepting the Revenue’s appeal from dismissal… Read More »

Reassessment beyond three years approved by Principal Commissioner instead of Principal Chief Commissioner is invalid.

By | August 3, 2026
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Reassessment beyond three years approved by Principal Commissioner instead of Principal Chief Commissioner is invalid. Issue Whether reassessment proceedings initiated beyond three years from the end of the relevant assessment year are legally sustainable when approval under Section 151 was granted by the Principal Commissioner instead of the specified higher authority (Principal Chief Commissioner/Principal Director… Read More »

Provisions of Section 13(1)(b) cannot be invoked to deny trust registration under Section 12A.

By | August 3, 2026
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Provisions of Section 13(1)(b) cannot be invoked to deny trust registration under Section 12A. Issue Whether the provisions of Section 13(1)(b) can be invoked at the stage of granting registration under Section 12A/12AB to reject an application, or if they apply solely at the stage of assessment when examining the grant of exemption. Facts Application… Read More »