Category: Income Tax

Observation of CIT(A) that AO is empowered to reopen the assessment u/s 147/148 can not be said to be illegal – ITAT In a recent judgment, the ITAT Delhi has held that observation of CIT(A) that Assessing Officer (AO) is empowered to reopen the assessment under section 147/148 …

Best judgement assessment u/s 144 cannot under any means be held to be erroneous u/s 263 for lack of enquiry- ITAT In a recent judgment, the ITAT Nagpur has held that best judgement assessment under section 144 of the Act, cannot under any means be held to be …

Penalty u/s 271AAA(1) not leviable on undisclosed income offered during assessment proceedings and not during search – Supreme Court.  In a recent judgment, the Hon’ble Supreme Court held that penalty u/s 271AAA(1) was not leviable when assessee offered undisclosed income during the course of assessment proceedings only and …

Claim of exemption u/s 10(26) for Tribal Person remanded when by ignorance PAN was wrongly applied in the name of Partnership Firm.  In a recent judgment, ITAT Guwahati remitted the issue claim for exemption u/s 10(26) for Tribal Person when by ignorance PAN was wrongly applied in the …

New Income Tax Bill 2025 nearly doubles existing sections of 1961 Act. Download copy of Bill and read FAQs on New Income Tax Bill 2025 Union Finance Minister, in her Budget 2025 speech has informed the proposal to introduce the new Income-Tax Bill/Code. The new Income Tax Act …

Without recalling earlier order, fresh rectification order u/s 154 can not be passed In a recent judgment, Allahabad High Court has quashed second rectification order u/s 154 which was passed without recalling the earlier order passed u/s 154 ABCAUS Case Law Citation:4409 (2025) (02) abcaus.in HC In the …

Annual Statement u/s 285 by a non-resident to be furnished within eight months  Under section 285 of the Income Tax Act, 1961 (the Act) every person, being a non-resident having a liaison office in India set up in accordance with the guidelines issued by the Reserve Bank of …

Possibility of initiating proceedings against an assessee cannot be kept pending over his head like a Damocle’s sword – Penalty u/s 271B quashed by High Court In a recent judgment, the Hon’ble Kerala High Court has quashed penalty u/s 271B observing that the possibility of initiating proceedings against …

There is no provision in Income Tax Act for discounting the time spent during the pendency of proceedings against the deceased assessee while computing the limitation period for initiating the proceedings against his Legal Representatives. In a recent judgment, the Hon’ble Karnataka High Court has held that there …

CCIT order rejecting application for compounding of offence u/s 276CCC quashed by Supreme Court being covered by the expression “first offence”. In a recent judgment, the Hon’ble Supreme Court quashed the order of the CCIT in rejecting the application for compounding of offence u/s 276CCC for belated filing …