Category: Income Tax

Ambiguous notices without striking off the irrelevant limb cannot be the foundation of imposition of any penalty – Supreme Court dismisses SLP of Revenue In a recent judgment, Hon’ble Supreme Court has dismissed the SLP of the Income Tax Department rejecting the contention that in the notice the …

Assessment itself is not a process to penalise assessee for earning undisclosed income – High Court upheld application of peak credit theory to undisclosed income.  In a recent judgment, Hon’ble High Court has upheld addition as per peak credit holding that the process of assessment itself is not …

Actual use of asset not the sole test for allowability of depreciation and it may be allowed when business only temporarily remained suspended In a recent judgment ITAT has held that Actual use of asset is not the sole test for allowability of depreciation and that, in appropriate …

It can never be the object of assessment proceedings to find an empirically, absolutely correct solution on every fact issue – High Court In a recent judgment, Hon’ble High Court has held that assessment proceedings are summary that must be concluded in a time bound manner. While full …

Penalty u/s 270A deleted as assesse filed revised computation during scrutiny correcting the mistake which was noticed only after the case was selected for scrutiny. In a recent judgment, ITAT has deleted penalty u/s 270A as the assesse filed revised computation during scrutiny and stated that due to …

Penalty u/s 271B for unfilled column 40 in Form 3CD related to details regarding turnover, gross profit etc. for previous and preceding year deleted by ITAT In a recent judgment, ITAT has held that unfilled column 40 in Form 3CD related to details regarding turnover, gross profit etc. …

Merely rectifying computation without amending assessment order without notice to assessee does not nullify the entire assessment  – ITAT In a recent judgment, ITAT Guwahati has held that merely rectifying  computation without touching in the body of order without giving opportunity to the assessee does not nullify the …

Once assessee discharges primary onus of providing basic documents in support of the identity, genuineness and the creditworthiness it shifts to AO to bring any evidence to the contrary – ITAT In a recent judgment, ITAT has held that once the assessee discharges his primary onus of providing …

CBDT has notified Cost Inflation Index for Financial Year / Tax Year 2026-27 CBDT has notified “384” as Cost Inflation Index for FY / Tax Year 2026-27. The increase in CII is only 2.12% or eight points as compared to increase of 3.58% or 13 points in the …

Power of CIT(A) under section 251(1)(a) to remand case could be exercised only when the assessment is passed u/s 144 of the Act only. In a recent judgment ITAT has held that the power to remand case entrusted to CIT(A) under newly inserted proviso to section 251(1)(a) of …