Presumptive Tax Filers Must Disclose Investments In ITR-4 Sugam
Presumptive Tax Filers Must Disclose Investments In ITR-4 Sugam 1. Small businesses and professionals filing under the presumptive tax scheme face a new disclosure requirement for FY 25-26. They must now reveal their investment details in the income tax return. 2. This applies to taxpayers opting for Section 44AD (business), Section 44ADA (profession)… […]
TDS Credit Cannot Be Denied for 26AS Mismatch: ITAT Hyderabad Sets the Record Straight
TDS Credit Cannot Be Denied for 26AS Mismatch: ITAT Hyderabad Sets the Record Straight In a crucial ruling addressing a very common issue faced by taxpayers, the ITAT Hyderabad has held that TDS credit cannot be denied merely because it is not reflected in Form 26AS, if the corresponding income is offered to tax. The decision… […]
Bogus Purchases: Only Profit Element Taxable, Not Entire Purchase – Bombay High Court
Bogus Purchases: Only Profit Element Taxable, Not Entire Purchase – Bombay High Court In a significant ruling that reinforces a settled but often ignored principle, the Bombay High Court in Pr. Commissioner of Income Tax v. Amcon Construction has upheld that only the profit element embedded in alleged bogus purchases can be brought to tax. The Court… […]
DTAA Compliance Gets Stricter: Form 10F Now Mandatory for All Treaty Claims
DTAA Compliance Gets Stricter: Form 10F Now Mandatory for All Treaty Claims A significant procedural shift has been introduced under the Income-tax Act, 2025 and Income-tax Rules, 2026, effective from 1st April 2026. The change revolves around a seemingly simple document-Form 10F (now replaced by Form 41)-but its impact on international taxation compliance is far-reaching…. […]
Reassessment Fails Without 143(2): Delayed Return in response to notice under section 148 Cannot Be Ignored
Reassessment Fails Without 143(2): Delayed Return in response to notice under section 148 Cannot Be Ignored In a crucial ruling reinforcing procedural safeguard in reassessment proceedings, the Tribunal has held that a return filed in response to notice under Section 148 cannot be treated as non-Est merely because it is delayed. More importantly, it… […]
Section 69A Cannot Be Invoked on Explained Cash Re-Deposits: ITAT Clarifies Law
Section 69A Cannot Be Invoked on Explained Cash Re-Deposits: ITAT Clarifies Law In an important ruling reinforcing the correct scope of deeming provisions, the Tribunal in Pradeep Patni vs ITO (ITA No. 687/Ind/2025) has held that Section 69A applies only when unexplained money is found with the assessee and not when deposits are duly explained. The decision… […]
No Tax on Old Deal done prior to enactment of law: ITAT Rules Section 56(2)(x) Cannot Apply Retrospectively
No Tax on Old Deal done prior to enactment of law: ITAT Rules Section 56(2)(x) Cannot Apply Retrospectively In a significant ruling protecting taxpayers from retrospective taxation, the Tribunal in Rinki Singh (ITA No. 56/Ran/2025) has held that Section 56(2)(x) cannot be invoked where the original property purchase agreement predates the provision, even if the sale deed… […]
Virtual Presence Is Not Physical Presence: Bombay High Court Draws a Clear Boundary
Virtual Presence Is Not Physical Presence: Bombay High Court Draws a Clear Boundary In a landmark ruling with far-reaching implications for cross-border taxation, the Bombay High Court in Benteler Automotive China v. ACIT has addressed a fundamental question of the digital age—does virtual presence amount to physical presence in India for tax purposes? The answer, delivered… […]
Foreign assets disclosure scheme 2026
Foreign assets disclosure scheme 2026 The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, announced in the Union Budget 2026, offers a 6-month window for taxpayers to voluntarily disclose previously unreported foreign assets and income. It provides immunity from penalties and prosecution under the Black Money Act, 2015, specifically targeting small taxpayers with… […]
No Cross-Examination, No Case: ITAT Mumbai Strikes Down Additions Based on Third-Party Statements
No Cross-Examination, No Case: ITAT Mumbai Strikes Down Additions Based on Third-Party Statements In a strong reaffirmation of the principles of natural justice, the Mumbai Tribunal has ruled in favour of the taxpayer by holding that additions based solely on unverified third-party statements cannot be sustained in law. The ruling exposes a recurring issue in… […]
