Void Reassessment Means Void Penalty: Mumbai ITAT Deletes Massive Section 271D Penalties
Void Reassessment Means Void Penalty: Mumbai ITAT Deletes Massive Section 271D Penalties In a significant ruling reaffirming the importance of jurisdictional validity in tax proceedings, the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that a penalty under Section 271D cannot survive once the reassessment proceedings from which it originated… […]
Section 54F Relief on 50 Future Flats? Hyderabad ITAT Says Yes
Section 54F Relief on 50 Future Flats? Hyderabad ITAT Says Yes Taxpayers entering into Joint Development Agreements (JDAs) often face a peculiar problem. While the Income Tax Department seeks to tax capital gains immediately upon transfer of development rights, it sometimes refuses to grant Section 54F exemption on the residential flats that are yet… […]
No Satisfaction, No Penalty: ITAT Deletes Section 271D Penalty Despite Alleged Cash Transaction Violation
No Satisfaction, No Penalty: ITAT Deletes Section 271D Penalty Despite Alleged Cash Transaction Violation Tax law is not merely about whether a violation has occurred. Equally important is whether the Income Tax Department follows the correct legal procedure before imposing a penalty. In a significant ruling, the Income Tax Appellate Tribunal (ITAT) has held that… […]
Can an Honest Tax Filing Mistake Attract a 200% Penalty? ITAT Ahmedabad Says No
Can an Honest Tax Filing Mistake Attract a 200% Penalty? ITAT Ahmedabad Says No In the era of faceless assessments and automated tax scrutiny, even a small error in an income tax return can sometimes snowball into a major dispute. But can a genuine clerical or arithmetic mistake by a tax consultant be treated… […]
Demonetisation Cash Deposits Cannot Be Taxed Twice: Delhi ITAT Gives Major Relief to Traders
Demonetisation Cash Deposits Cannot Be Taxed Twice: Delhi ITAT Gives Major Relief to Traders Mere Increase in Cash Sales During Demonetisation Is Not Enough for Addition Under Section 68 The demonetisation period continues to generate tax disputes even years after the withdrawal of ₹500 and ₹1,000 currency notes. One of the most common allegations… […]
No Return Filed, Yet ITAT Grants Relief: Principle of Consistency Defeats Revenue’s Bid to Tax Entire Bank Deposits
No Return Filed, Yet ITAT Grants Relief: Principle of Consistency Defeats Revenue’s Bid to Tax Entire Bank Deposits When the Tax Department Itself Adopted a Method Earlier, Can It Suddenly Change Its Stand? The principle of consistency is one of the most important yet often overlooked doctrines in tax law. While each assessment year… […]
Can Non-Specified Professionals Use Section 44AD? A Hidden Loophole or Legislative Gap in Presumptive Taxation?
Can Non-Specified Professionals Use Section 44AD? A Hidden Loophole or Legislative Gap in Presumptive Taxation? The presumptive taxation scheme under the Income Tax Act was introduced to simplify tax compliance for small taxpayers. While Section 44AD applies to eligible businesses and Section 44ADA applies to specified professionals, an interesting interpretational issue has remained unresolved… […]
Advance Tax: The Tax EMI You Can’t Afford to Miss
Advance Tax: The Tax EMI You Can’t Afford to Miss Today, 15th June, marks the first advance tax installment falling due under the new Income Tax Act, 2025. While many taxpayers are still settling into the new tax year, the tax law has already reached its first checkpoint. Missing this deadline may not immediately invite a… […]
Foreign Travel Under the New Income Tax Act, 2025: Is Form 156 Mandatory Before Every Overseas Trip?
Foreign Travel Under the New Income Tax Act, 2025: Is Form 156 Mandatory Before Every Overseas Trip? The new Income Tax Act, 2025, effective from 1 April 2026, introduces a significant compliance requirement for individuals travelling abroad. One of the notable changes is the replacement of the old Form 30C with a new Departure… […]
Section 69A Addition Cannot Survive Without Proof of Ownership of Unaccounted Cash: Important Tribunal Ruling
Section 69A Addition Cannot Survive Without Proof of Ownership of Unaccounted Cash: Important Tribunal Ruling In a significant ruling on unexplained money under Section 69A of the Income Tax Act, the Tribunal has held that merely because an assessee is a key decision-maker in a company does not automatically establish personal ownership of unaccounted… […]
