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 Tribunal quashed an unexplained investment addition based purely on a digital ledger retrieved from a mobile phone, as it was not corroborated by any evidence of actual cash payment or movement. Following its own prior ruling, the ITAT confirmed that digital evidence like WhatsApp messages must comply with Section 65B to be est in law.
ITAT Ahmedabad ruled that while purchases from a blacklisted entity were not fully proven, the entire amount couldn’t be added to income as corresponding sales were accepted. Following Gujarat High Court precedents, the Tribunal restricted the addition to a 5% profit markup over the declared Gross Profit rate of 12.63%, thereby deleting the majority of the original Rs. 92,20,100 addition.
The Base Metal Chemicals vs ACIT case examines the validity of large tax additions made by the AO on conversion charges, partner payments, under-invoiced sales, and stock valuation. The key issue was whether the additions were based on commercial reality or mere presumption.
The ITAT confirmed that a commission paid to non-resident agents operating solely abroad, without a Permanent Establishment (PE) in India, is not taxable in the country. This finding resulted in the cancellation of the disallowance made under Section 40(a)(i) for non-deduction of tax.
The Tribunal held that a generic, non-specific satisfaction note and the absence of incriminating material belonging to the assessee-company rendered the Section 153C proceedings invalid from the outset.1 Consequently, the entire assessment, including additions for commission income, was quashed.
The Tribunal allowed the taxpayer’s legal ground, holding that the statutory requirement of prior approval under Section 153D was reduced to an empty formality. The ruling emphasizes that the approval must indicate due application of mind to the seized material and issues for each assessment year and cannot be a generic, consolidated format.
The ITAT dismissed an assessee’s quantum appeal, confirming that a ₹10.42 Cr write-off for decommissioned windmills was a capital loss, not a revenue deduction. Since the trust offered this as business income, the ITAT held the only permissible treatment was adjustment in the block of assets.
The ITAT set aside a Section 69A addition for unexplained cash payments, ruling that the AO must first verify the facts. The case was remanded because the assessee claimed an original allottee made the payment but failed to provide the plot’s transfer agreement as proof.
The ITAT set aside the PCIT’s revision order, confirming that the sale of an entire residential building floor-by-floor to different buyers still constitutes the sale of one single house property for Section 54 claim purposes. Since the AO had already examined the capital gains claim in detail, the assessment was neither erroneous nor prejudicial to the Revenue, invalidating the Section 263 proceedings.
The ITAT set aside the PCIT’s revision order, confirming that the revisional power under Section 263 cannot be invoked merely to conduct a deeper inquiry or change a view previously taken by the AO. Since the AO had specifically examined and verified the share’s Fair Market Value (FMV) during the original scrutiny, the assessment was neither erroneous nor prejudicial to the Revenue.
