Category: Income Tax

Without enquiring when the order was actually served, dismissing the appeal for inordinate delay was not justified – ITAT In a recent judgment, ITAT Lucknow has held that without enquiring into, when assessee was actually served with the order, dismissing the appeal for inordinate delay was not justified. …

Vague references to “incriminating material” without disclosing basis or specification of the evidence rendered the jurisdiction transfer order u/s 127(2) unsustainable – High Court In a recent judgment, Calcutta High Court has held that vague references to “incriminating material” without disclosing basis or specification of the evidence rendered …

Contingent liabilities not debited to profit and loss account cannot be added merely on the basis of disclosure in the tax audit report – ITAT  In a recent judgment, ITAT Ahmedabad deleted adjustment made by CPC u/s 143(1)(a) holding that contingent liabilities which are not debited to the …

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 …