Category Archives: Income Tax

Appellate authority cannot convert misreporting penalty to under-reporting penalty when misreporting charge fails.

By | October 21, 2026
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Appellate authority cannot convert misreporting penalty to under-reporting penalty when misreporting charge fails. Appellate authority cannot convert misreporting penalty to under-reporting penalty when misreporting charge fails. Issue Whether penalty for under-reporting in consequence of misreporting under Section 270A(8)/270A(9) can be sustained when none of the specific limb conditions under sub-section (9) are satisfied. Whether an… Read More »

Sanction granted en masse under section 153D without application of mind renders search assessments void.

By | October 21, 2026
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Sanction granted en masse under section 153D without application of mind renders search assessments void. Issue Whether mechanical prior approval granted under Section 153D en masse within less than 24 hours without application of mind invalidates consequential search assessment orders passed under Section 153A. Facts Search and Seizure Action: Reassessment/assessment proceedings were initiated against the… Read More »

Reassessment notice issued on 31.08.2024 for AY 2016-17 is time-barred and quashed.

By | October 21, 2026
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Reassessment notice issued on 31.08.2024 for AY 2016-17 is time-barred and quashed. Issue Whether a reassessment notice issued under Section 148 on 31.08.2024 for Assessment Year 2016-17 is barred by limitation when the six-year statutory period expired on 31.03.2023. Whether the order passed under Section 148A(d) and the consequential notice issued under Section 148 are… Read More »

Reassessment notice issued beyond outer time limit of 31-3-2023 for AY 2016-17 is barred by limitation.

By | October 21, 2026
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Reassessment notice issued beyond outer time limit of 31-3-2023 for AY 2016-17 is barred by limitation. Issue Whether the outer limit for issuing a reassessment notice under section 148 for AY 2016-17 was 31-03-2023 as per the first proviso to section 149. Whether the time granted to the assessee to reply under section 148A(b) is… Read More »

Purchasing shares pre-bonus and selling post-bonus generating short-term capital loss is not an impermissible avoidance arrangement under GAAR.

By | October 21, 2026
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Purchasing shares pre-bonus and selling post-bonus generating short-term capital loss is not an impermissible avoidance arrangement under GAAR. Issue Whether purchasing shares of listed companies prior to bonus declaration and selling them post-allotment to generate a short-term capital loss constitutes an “arrangement” under Section 102 or an “impermissible avoidance arrangement” under Section 96(1) attracting General… Read More »

Contraceptives do not fall under Eleventh Schedule; Section 80-IB deduction allowed maintaining historical consistency.

By | October 21, 2026
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Contraceptives do not fall under Eleventh Schedule; Section 80-IB deduction allowed maintaining historical consistency. Issue Whether contraceptives manufactured by the assessee fall within the list of non-priority articles specified in Serial Nos. 27 and 28 of the Eleventh Schedule, thereby disentitling the assessee from claiming deduction under Section 80-IB. Whether the Assessing Officer was justified… Read More »

Order denying Section 80G approval remanded due to registration status and lack of opportunity.

By | October 21, 2026
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Order denying Section 80G approval remanded due to registration status and lack of opportunity. Issue Whether the rejection of Form 10AB for approval under Section 80G(5)(ii) by CIT(E) was sustainable when the trust held a valid Section 12AB registration on the date of the order and was not given an opportunity to respond to the… Read More »

Reassessment proceedings initiated against a minor whose income is clubbed with father’s are untenable.

By | October 21, 2026
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Reassessment proceedings initiated against a minor whose income is clubbed with father’s are untenable. Issue Whether initiation of reassessment proceedings under Section 148 read with Section 148A against a minor assessee, whose income is clubbed with that of the father under Section 64(1A), is legally maintainable. Facts Profile of the Assessee: The petitioner is a… Read More »

Section 54F exemption applies where purchase delay falls within COVID-19 limitation exclusion period.

By | October 21, 2026
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Section 54F exemption applies where purchase delay falls within COVID-19 limitation exclusion period. Issue Whether Section 54F, being a beneficial provision, should be liberally interpreted when the delay in purchasing a residential house is due to circumstances beyond the assessee’s control (COVID-19 pandemic). Whether the delay of 7 months and 18 days beyond the statutory… Read More »

Appeal dismissed without merit adjudication as assessee completed liquidation process.

By | October 21, 2026
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Appeal dismissed without merit adjudication as assessee completed liquidation process. Issue Whether tax deducted under a wrong section (Section 194C instead of Section 194J) satisfies the requirements of Section 40(a)(ia) to avoid business disallowance. Whether payments made by a hospital to another hospital for professional services fall under TDS provisions of Section 194J rather than… Read More »