Category: Income Tax

Onus lies on assessee to prove amount received from clients towards expenses were actually expended for the purpose intended. In a recent judgment, the ITAT Delhi has upheld that for amount received from clients towards expenses reimbursement, onus lies on assessee to prove that the expenses were wholly …

ITAT deleted addition u/s 68 in the case of Mrs Swapna Roy wife of deceased Subrata Roy of Sahara India for cash deposited in bank account In a recent judgment, the ITAT Delhi in the case of Mrs Swapna Roy wife of deceased Subrata Roy of Sahara India, …

Assessment order set aside as show cause notice was sent to the chartered accountant of the assessee who neither informed regarding notice nor filed any reply.  In a recent judgment, Karnataka High Court set aside the assessment order as the show cause notice was sent to the chartered …

AO using the terms “underreporting” and “misreporting as a consequence of underreporting” loosely, showed he was unaware of the different connotations and their implications.  In a recent judgment, ITAT Agra has deleted penalty under section 270A observing that the AO apparently used the terms “underreporting” and “misreporting as …

ITAT directs AO to examine claim of deferred revenue expenditure not claimed in profit and loss account In a recent judgment, ITAT Indore has directed AO to examine claim for deduction of expenses treated by assessee as “deferred revenue expenses” in books of account as books entries are …

CPC cannot continue to rectify and re-rectify the intimation under Section 143(1)(a) repeatedly. In a recent judgment Delhi High Court has held that CPC cannot continue to rectify and re-rectify the intimation under Section 143(1)(a) repeatedly. ABCAUS Case Law Citation:4569 (2025) (05) abcaus.in HC In the instant case, …

When land appurtenant was sold without building, it is not sale of residential property but sale of  adjacent land and not qualified for exemption under section 54 of the Income Tax Act, 1961 In a recent judgment ITAT Allahabad upheld denial of exemption under section 54 holding that …

Expenditure over income should have been considered even if the claim of exemption under section 11 was not allowed by CPC – ITAT  In a recent judgment ITAT Guwahati has held that audited income and expenditure account showing net excess expenditure over income should have been considered even …

CBDT has notified ITR-U (Updated return of Income) u/s 139(8A) for Assessment Year 2025-26. CBDT has notified ITR-U (Updated return of Income) under section 139(8) of the Income Tax Act, 1961 (the Act) for Assessment Year 2025-26. Section 139(8A) of the Act provides that any person (whether or …

Addition of unexplained investment upheld when assessee was not in the category of the persons permitted to accept the demonetised currency.  In a recent judgment Hon’ble Supreme Court dismissed the Petition challenging addition as unexplained investment towards deposit of demonetised currency in bank as after demonetisation, the assessee …