Income Tax : The ruling clarifies that unauthenticated digital chats and screenshots cannot form the sole basis of tax additions without proper...
Income Tax : Judicial rulings clarify that satisfaction for initiating action against other persons in search cases must be recorded promptly. ...
Income Tax : Section 270A penalties must specify the exact misreporting clause. Vague notices invalidate penalties and can restore immunity und...
Income Tax : Understand the three core processes of Indian Income Tax: Rectification of mistakes (Sec 154), the four types of Assessment (Summa...
Income Tax : Understand your legal rights and procedural protections during Income Tax and PMLA raids in India. Learn what to do and what to a...
CA, CS, CMA : Legal opinion sought by NFRA on auditing standards, penalties, and regulatory roles in India. Analysis of NFRA’s powers under th...
Income Tax : Learn about the new block assessment provisions for cases involving searches under section 132 and requisitions under section 132A...
Goods and Services Tax : The Ministry of Finance reports the arrest of a firm's finance head for GST evasion worth Rs 88 crore. Learn about the case and it...
Income Tax : The Central Board of Direct Taxes ( CBDT) has directed re-opening of all cases under the search and seizure label, income-escapin...
Income Tax : The ITAT Ahmedabad held that isolated WhatsApp messages and electronic communications cannot, by themselves, support additions in ...
Income Tax : ITAT Ahmedabad held that penalty under Section 43 of the Black Money Act could not be imposed when foreign assets were subsequentl...
Income Tax : The Hyderabad Bench emphasized that penalty under Section 271(1)(c) cannot be imposed solely because an addition survives appellat...
Income Tax : The Tribunal held that Section 263 cannot be invoked where the assessee never claimed the alleged expenditure as a deduction. With...
Income Tax : The Tribunal ruled that proportionate interest disallowance under Section 36(1)(iii) cannot be sustained when the assessee has ade...
Income Tax : Read the order issued by the Central Board of Direct Taxes (CBDT), Ministry of Finance, specifying the scope of the e-Appeals Sche...
Income Tax : Dispute arose between the Department and the assessees with regard to adjustment of such seized/requisitioned cash against advance...
The Delhi ITAT quashed a ₹42.10 Crore addition made in a Section 153A assessment, confirming that additions cannot be made to completed assessments without incriminating material seized during the search. The ruling follows the binding Supreme Court precedent in Abhisar Buildwell.
The Tribunal deleted the unexplained investment (Section 69) and cash interest (Section 69A) additions, emphasizing that unsigned, vague slips and digital data, where the parties were not confronted and no independent verification was done, have no evidentiary value in search assessment law. This aligns with Supreme Court rulings on the invalidity of additions based on non-speaking loose sheets.
Understand the three core processes of Indian Income Tax: Rectification of mistakes (Sec 154), the four types of Assessment (Summary, Scrutiny, Best Judgment, and Reassessment), and the Appeal mechanism to CIT(A)/ITAT against adverse orders.
The ITAT Kolkata quashed a search assessment (Sec. 153A) because a search was never physically conducted on the assessee’s premises, ruling that a mere mention in a panchnama is insufficient to confer jurisdiction. The key takeaway is that an assessment under Sec. 153A is void ab initio if an actual search on the person or property of the assessee is not initiated and conducted.
This ruling invalidates an income tax addition that relied entirely on electronic data (an excel sheet) seized from a third party without the mandatory certificate under Section 65B of the Evidence Act. The ITAT stressed that in the absence of corroborative evidence, clear linking of the assessee to the data, and providing due process, the addition made was illegal and unsustainable in law.
Drawing on precedents, the ITAT held that a mandatory Section 153D approval for search assessments must be proven. The assessment order was set aside because the Department could not locate or produce the JCIT’s prior approval and satisfaction note after eight years.
The ITAT deleted a Rs.1.30 crore addition, ruling that the reassessment was invalid because the reason for reopening (payments made by the assessee) was entirely different from the reason for the final addition (loan received by the assessee). The Tribunal held that an addition made on a new, unrecorded reason renders the reassessment proceedings unsustainable in law.
ITAT Delhi held that notice under section 274 r.w.s. 271(1)(c) of the Income Tax Act issued without specifying the specific charge or limb i.e. without striking off the irrelevant limb is erroneous. Accordingly, penalty order u/s. 271(1)(c) cannot be sustained.
ITAT Delhi held that notice under section 274 r.w.s. 271(1)(c) of the Income Tax Act issued without specifying the specific charge or limb i.e. without striking off the irrelevant limb is erroneous. Accordingly, penalty order u/s. 271(1)(c) cannot be sustained.
The Delhi ITAT ruled that a tax addition based on a vague name in uncorroborated loose papers is invalid without direct evidence linking it to the assessee. The decision emphasizes that suspicion from such dumb documents cannot replace concrete proof in tax assessments.
