Category: Income Tax

ITAT quashed additions based on entries found in small diary found during search without any corroborative evidence. In a recent judgment, the ITAT Delhi quashed addition based on entries found in small diary found in the course of search without making any independent enquiry or any corroborative evidence. …

CBDT issues FAQs relating to Revised Guidelines for Compounding of Offences under Income-Tax Act, 1961  CBDT has issued Circular on Frequently Asked Questions (FAQs) relating to Revised Guidelines for Compounding of Offences under Income-Tax Act, 1961 The revised Guidelines for Compounding of Offences under the Income-Tax Act, 1961 …

Reopening proceedings upheld though the notice u/s 148 wrongly stated that no return was filed as reopening was not based on non-filing of ITR In a recent judgment, Hon’ble Bombay High Court upheld the initiation of reopening proceedings u/s 147 where though the notice u/s 148A(d) wrongly stated …

Mere non response by assessee to show cause notice u/s 263 is not sufficient to justify revisionary order – ITAT In a recent judgment, ITAT Agra has held that mere non response by the assessee to show cause notice u/s 263 is not sufficient to justify revisionary order …

Penalty u/s 270A can not be levied for only making a claim which was disallowed. Filing of Form No. 68 for claiming immunity u/s 270AA is only procedural and directory – ITAT  In a recent judgment, ITAT Agra deleted penalty u/s 270A holding that no penalty u/s 270A …

CBDT issues clarification on Circular No. 01/2025 On Application of PPT under India’s DTAAs CBDT has issued Circular No. 01/2025 dated 21.01.2025 as a guidance to provide clarity and certainty on the application of the Principal Purpose Test (PPT) provision under India’s Double Taxation Avoidance Agreements (DTAAs). It …

Levy of penalty u/s 271(1)(b) for each default in not responding to notices issued u/s 142(1) of the Act was not justified – ITAT In a recent judgment, ITAT Pune deleted penalty u/s 271(1)(b) holding that levy of penalty for each default in not responding to the notices …

Refund of advance amount on cancellation of agreement for purchase of property does not partake the character of loan or deposit or any specified sum as provided u/s 269SS – ITAT In a recent judgment, ITAT Hyderabad deleted penalty u/s 271D holding that refund of advance amount on …

Foreign Tax Credit cannot be denied merely because there is a delay in filing Form-67 which is directory and not mandatory. In a recent judgment, the ITAT Hyderabad has held that Foreign Tax Credit cannot be denied merely because there is a delay in filing Form-67 as consistently …

ITAT allows issue of CPC adjustment made in intimation u/s 143(1) to be examined in proceedings u/s 143(3) In a recent judgment, the ITAT Bangalore has allowed issue of CPC adjustment made in intimation u/s 143(1) to be examined in proceedings u/s 143(3) observing that the object for …