Income Tax : The article explains remedies available after adverse tax orders under scrutiny and reassessment. The key takeaway is that choosin...
Income Tax : The Court clarified that mere pendency of information exchange requests under DTAA cannot justify continuing a Look Out Circular. ...
Income Tax : A surge in Section 143(2) notices was triggered by the June 2025 limitation deadline. This explains why cases were picked and how ...
Income Tax : The Tribunal ruled that penalty under Section 271A cannot be levied merely because books were rejected and income was estimated. S...
Income Tax : The ITAT held that an assessment completed before receiving the DVO report under section 50C(2) is invalid. All additions and disa...
Income Tax : Delhi ITAT allows Sanco Holding, a Norwegian company, to compute income from bareboat charter of seismic vessels under Article 21(...
Income Tax : It has been observed that in many cases an assessee may wish to make a claim which was not made in the return of income filed unde...
Income Tax : We have attached a file in excel format. The file contains the format of various details which normally assessing officer asks As...
Income Tax : Tribunal observed that the Assessing Officer failed to establish any mismatch in stock, sales, or accounting records before making...
Income Tax : ITAT Hyderabad held that constituent members of a JV or Consortium can claim deduction under Section 80IA(4) when they actually ex...
Income Tax : The Tribunal found that full payment, TDS deduction, and transfer of possession established completion of the transaction for capi...
Income Tax : ITAT Rajkot held that cash deposits made during demonetization were fully supported by audited books of account, cash books, and b...
Income Tax : The Hyderabad ITAT held that purchases cannot be treated as bogus merely because the supplier failed to respond to a notice under ...
Income Tax : Instruction No.1/2015 Clarification regarding applicability of section 143(1D) of the Income-tax Act, 1961- Vide Finance Act, 2012...
The dispute was the computation of the block period under S 153 for a non-searched person, where the AO counted the period from the search date. The ITAT affirmed the quashing of the assessment, ruling that the block period must be reckoned from the date the seized material is received by the jurisdictional AO, as per binding Supreme Court precedent.
The core issue was the disallowance of Rs.169 Cr in Customer Acquisition Cost (CAC), treated as capital expenditure for an enduring benefit. The ITAT deleted the addition, ruling that routine, recurring expenses like porting charges and handset subsidies in the telecom sector are revenue in nature and fully deductible under S 37(1).
The case addressed the disallowance of Rs.7.86 Cr treated as unexplained cash credit due to a sharp increase in proprietor’s capital shown in the tax return. The ITAT set aside the addition, finding a prima facie case of mere misclassification of partner overdrawn balances as capital, which should not be automatically treated as new unexplained income under S 68.
The ITAT Mumbai canceled seven revisionary orders under section 263, ruling that for completed (unabated) assessments under section 153A, the Principal Commissioner of Income Tax (PCIT) cannot make additions or disallowances, such as challenging an 80IC deduction, without finding incriminating material during the search. The Tribunal reaffirmed that the PCIT’s power under $s.263$ cannot be used for a mere roving inquiry.
ITAT Jaipur held that gain not realized during the year under consideration cannot be taxed under the head capital gain or as income under the head profit and gains of business or profession by valuing unsold scrips at market value.
The case addressed the disallowance of Rs.1.89 Cr, which the AO treated as a donation to other trusts and deemed income under S 11(3). The ITAT deleted the addition, ruling that payments made to other NGOs for executing charitable projects under the Trust’s supervision and control constitute genuine application of income, not donation.
ITAT Mumbai ruled that government incentives to promote industrial development in disaster-hit Kutch and modernization under TUF scheme are capital receipts. Revenue’s appeal was dismissed, reaffirming purpose test from Ponni Sugars and Sahney Steel.
The case addressed the disallowance of Rs.2.21 Cr on dealer foreign tour expenses, which the AO questioned for lack of formal agreements. The ITAT confirmed the deletion of the addition, ruling the expenses were genuine business promotion and commercially expedient under S 37(1) particularly since a similar scheme was accepted for the holding company.
ITAT Hyderabad held that deduction claimed under section 43B of the Income Tax Act supported by necessary documentary evidences is allowable. Accordingly, deduction allowed to the extent relevant evidences are furnished.
The case addressed a Rs.605 Cr addition under Section 68 for alleged bogus sales, where the AO didn’t reject the books. The ITAT remanded the matter, directing the AO to recompute income by applying the average three-year Gross Profit rate on sales, establishing that entire sales cannot be taxed as unexplained credits when books aren’t rejected.
