Category: Income Tax

Where sales are duly recorded in books and VAT returns, to treat it bogus sales, AO must bringing cogent adverse material on record – ITAT In a recent judgment, ITAT has held that in case of alleged bogus sales, once the assessee claims that sales were duly recorded …

Expenses to celebrate Diwali with staff creates a goodwill and, therefore amounts to expenses incurred for the purpose of business – ITAT In a recent judgment, ITAT has held that expenses incurred by the assessee to celebrate Diwali at his business premises along with staff members, definitely creates …

Section 292BB of the Income Tax Act, 1961 does not preclude Assessee raising objection for non issuance of notice u/s 143(2) of the Act In a recent judgment, Hon’ble Supreme Court has held that Section 292BB of the Income Tax Act, 1961 does not preclude an assessee from …

Expression “reason to believe” in Section 147 means cause or justification. The AO need not have finally ascertained the fact by legal evidence or conclusion. In a recent judgment, Hon’ble Supreme Court has held that the expression “reason to believe” in Section 147 of the Income Tax Act, …

Notice u/s 148 set aside as it was issued on the basis of same facts and material which were already examined by the CIT(A) in favour of the assessee. In a recent judgment, Hon’ble High Court has set aside notice issued u/s 148 for reopening the assessment, on …

We cannot be blind to reality of money laundering through accommodation entries, mere paper trail not enough – ITAT In a recent judgment upholding the addition u/s 68, the Tribunal held that it cannot be blind to the reality of money laundering through accommodation entries, and it was …

A claim of deduction made in return, even if found inadmissible, does not automatically lead to misreporting of income – ITAT In a recent judgment, ITAT deleted penalty u/s 270A holding that a claim of deduction made in the return, even if ultimately found to be inadmissible, does …

After holding that the cash receipts and cash payments are unexplained, ad-hoc estimation of income can not be adopted – High Court In a recent judgment, Hon’ble High Court has held that ITAT after holding that the cash receipts and cash payments are unexplained, can not, adopt an …

Dividing total turnover by 365 days and concluding that assessee could not have made such cash sale on a single day is based purely on conjectures and surmises – ITAT In a recent judgment Allahabad ITAT has held that the action of the Assessing Officer (AO) in making …

In a recent judgment Andhra Pradesh High Court struck down Section 147A of the Income Tax Act, 1961 as unconstitutional. As a result, all the proceedings initiated by the respective Jurisdictional Assessing Officers (JAOs) under Sections 148A and 148 are without jurisdiction and are liable to be set …