Category: Income Tax

Penalty u/s 271B can not be levied in a case where tax audit report was furnished before completion of the assessment In a recent judgment, ITAT Cochin has held that penalty u/s 271B can not be levied for non furnishing of tax audit report within due date as …

ITAT deleted addition for cash deposit on account of the statement given by the Prime Minister, press statement and CBDT SOP In a recent judgment, ITAT Chennai has held that addition u/s 69A cannot be sustained on account of the statement given by the Prime Minister, press statement …

ITAT allowed exemption u/s 54EC for delayed investment in REC Bonds as the sale consideration was received late.  In a recent judgment, ITAT Pune allowed exemption under section 54EC for delayed investment in REC Bonds as the receipt of sale consideration was not in the control of the …

Delay in filing Form 56F was only a procedural lapse and that cannot be a ground for not granting the deduction claimed under Section 10AA of the Act.  In a recent judgment, the Madras High Court has upheld that delay in filing Form 56F was only a procedural …

Declaring surrendered income in PL Account as “Indirect Income” and reflected it in closing stock does not indicate any tax evasion. In a recent judgment, the Chandigarh ITAT has held that declaring surrendered income in PL Account as “Indirect Income” and enhancing closing stock does not indicate any …

It is incumbent upon AO to decide the case u/s 148A(d) on the basis of the material on record including the reply of the assessee – High Court In a recent judgment, the Himanchal Pradesh High Court has held that it is incumbent upon the Assessing Officer to …

CBDT Guidelines for Compulsory Selection of Returns for Complete Scrutiny during the Financial Year 2025-26 CBDT has issued guidelines dated 13.06.2025 for compulsory selection of returns for complete scrutiny during the financial year 2025-26 The Income tax Scrutiny are usually of two types, (i) limited scrutiny and the …

Notice of demand being part of assessment order is rectifiable u/s 154 of the Act for any apparent errors – ITAT In a recent judgment, the Patna ITAT has held that notice of demand is very much part of the assessment order and in case an error comes …

Authorized Officer issuing warrant of authorization of search u/s 132(1) can not issue notice u/s 131(1A) post-search operation.  In a recent judgment, the Allahabad High Court has held that the Authorized Officer who issued warrant of authorization of search u/s 132(1) can not issue notice u/s 131(1A) post-search …

Supreme Court dismissed SLP against addition made u/s 68 instead of section 41(1) as where genuineness of the loan transaction was doubted, there can not be any remission of liability. Supreme Court dismissed SLP against judgment of Delhi High Court confirming addition u/s 68 and holding that where …