A Wrong Section Should Not Deny the Right: Nagpur ITAT recognises Substance Over Technicalities
A Wrong Section Should Not Deny the Right: Nagpur ITAT recognises Substance Over Technicalities Registration of Charitable Trusts Cannot Be Rejected Merely Because of a Procedural Mistake A charitable trust is created to serve society, not to become a victim of paperwork. Yet, many genuine trusts find themselves caught in the web of procedural… […]
No Old Bills? Still Eligible for Indexed Cost and Full Section 54 Exemption, Rules Chandigarh ITAT
No Old Bills? Still Eligible for Indexed Cost and Full Section 54 Exemption, Rules Chandigarh ITAT Joint Ownership Does Not Mean Half Deduction When Entire Investment Is Made by One Person Taxpayers claiming capital gains exemptions often face two recurring challenges. First, proving the cost of construction or improvement carried out many years ago…. […]
Can a Recorded Bank Loan Become ‘Unexplained Money’ Under Section 69A? Mumbai ITAT Says No
Can a Recorded Bank Loan Become ‘Unexplained Money’ Under Section 69A? Mumbai ITAT Says No Section 69A Cannot Be Invoked Merely Because the Revenue Suspects an Accommodation Entry Sections 68 and 69A are among the most frequently invoked provisions in income-tax assessments. However, courts have repeatedly reminded tax authorities that these provisions operate only… […]
Wrong Route, Wrong Assessment: Delhi ITAT Quashes Assessment Based on Third-Party Search Material
Wrong Route, Wrong Assessment: Delhi ITAT Quashes Assessment Based on Third-Party Search Material If the Department Wants to Use Search Documents Found from Someone Else, It Must Follow the Reassessment Procedure Tax law is not only about what the Income Tax Department can do-it is equally about how it must do it. In a significant… […]
Presumptive Taxation Under Section 44AD Saves Taxpayer from Bogus Billing Allegation: ITAT Deletes Additions Under Sections 68 and 69C
Presumptive Taxation Under Section 44AD Saves Taxpayer from Bogus Billing Allegation: ITAT Deletes Additions Under Sections 68 and 69C Suspicion Cannot Replace Evidence, Says Surat ITAT In an important ruling for small traders and taxpayers opting for presumptive taxation, the Surat Bench of the Income Tax Appellate Tribunal (ITAT) has held that additions… […]
No Quantum, No Penalty: ITAT Holds Section 271(1)(c) Penalty Cannot Survive When Assessment Is Sent Back for Fresh Adjudication
No Quantum, No Penalty: ITAT Holds Section 271(1)(c) Penalty Cannot Survive When Assessment Is Sent Back for Fresh Adjudication Penalty Proceedings Cannot Stand on a Foundation That No Longer Exists One of the most fundamental principles of tax law is that penalty proceedings are generally consequential to the assessment proceedings from which they… […]
Income Tax Department to Challenge Bombay High Court’s Trust Registration Ruling: What It Means for Charitable Trusts
Income Tax Department to Challenge Bombay High Court’s Trust Registration Ruling: What It Means for Charitable Trusts The long-running debate between charitable trusts and the Income Tax Department has entered a new phase. After the Bombay High Court granted significant relief to several public charitable trusts by holding that the absence of an express… […]
Sometimes the Best Tax Victory Is Not on Merits but on Jurisdiction
Sometimes the Best Tax Victory Is Not on Merits but on Jurisdiction Why Every Taxpayer Should Examine Technical Grounds Before Fighting on Facts When taxpayers receive an assessment order, their immediate reaction is usually to defend the additions on merits. They gather documents, prepare explanations, and focus entirely on proving that the Assessing… […]
Section 154 Is Not a Shortcut for Reassessment: ITAT Quashes Rectification on Directors’ Bonus
Section 154 Is Not a Shortcut for Reassessment: ITAT Quashes Rectification on Directors’ Bonus Apparent Mistakes Can Be Corrected, Debatable Issues Cannot The power of rectification under Section 154 of the Income Tax Act is one of the most frequently used tools available to the Income Tax Department. However, it is also one… […]
ITAT Nagpur Rules That Investments Already Recorded in Books Cannot Be Treated as Unexplained
ITAT Nagpur Rules That Investments Already Recorded in Books Cannot Be Treated as Unexplained Tax assessments often become a game of assumptions rather than evidence. Sometimes, additions are made merely because the Assessing Officer notices a large investment or expenditure without appreciating that the same already forms part of the regular books of… […]
