Penalty on Surrendered Income During Survey: Is It Legally Sustainable?
Penalty on Surrendered Income During Survey: Is It Legally Sustainable? A very common situation in tax practice is where unaccounted income is detected during survey proceedings, and the assessee, to buy peace and avoid litigation, admits the income and subsequently offers it to tax in the return of income. But the real controversy begins after… […]
Changes in ITR-1 (Sahaj) Form for AY 2026-27: Bigger Scope, Tighter Compliance
Changes in ITR-1 (Sahaj) Form for AY 2026-27: Bigger Scope, Tighter Compliance The Income Tax Department has introduced important updates in ITR-1 (Sahaj) for AY 2026-27, reflecting a clear shift towards greater transparency, data matching, and compliance tracking. While the form continues to remain simple for salaried taxpayers, the scope has been expanded and reporting requirements… […]
Bogus Purchase Allegations Collapse Without Evidence: ITAT
Bogus Purchase Allegations Collapse Without Evidence: ITAT The Income Tax Department’s growing reliance on third-party information-especially from GST intelligence and Insight portals-has led to a surge in reassessment cases involving alleged “bogus purchases.” However, a recent decision by the ITAT Nagpur in Sunrise Structural & Engineering Pvt. Ltd. vs ACIT has once again reminded tax… […]
Income-tax Rules, 2026: Relief for Salaried Taxpayers – or Rethinking of Policy? (Part–4)
Income-tax Rules, 2026: Relief for Salaried Taxpayers – or Rethinking of Policy? (Part-4) This article forms Part–4 of my ongoing series on the New Income-tax Act – 2025, wherein we have already examined various structural, procedural, and conceptual changes introduced in the new law. While the earlier parts focused on the framework of the… […]
Wife Seeking Husband’s ITR under RTI? Karnataka HC Draws a Clear Line
Wife Seeking Husband’s ITR under RTI? Karnataka HC Draws a Clear Line In an important ruling balancing privacy rights and matrimonial disputes, the Karnataka High Court in Income-tax Officer & CPIO v. Smt. Gulsanober Bano Zafar Ali Ansari has clarified whether a wife can obtain her husband’s income tax returns through the RTI Act for use in… […]
BSNL VRS Compensation Held Fully Exempt – ITAT Pune Treats It as Retrenchment u/s 10(10B)
BSNL VRS Compensation Held Fully Exempt – ITAT Pune Treats It as Retrenchment u/s 10(10B) In a batch of appeals, the ITAT Pune examined whether ex-gratia compensation received by BSNL employees under the Voluntary Retirement Scheme (VRS), 2019 is taxable or exempt. The Tribunal held that although the scheme is termed as “VRS”, in… […]
Section 292BC: A Game-Changer to Neutralise Technical Defects in Tax Approvals
Section 292BC: A Game-Changer to Neutralise Technical Defects in Tax Approvals In a major legislative move aimed at plugging procedural loopholes, the Finance Bill, 2026 has introduced a new Section 292BC in the Income-tax Act, 1961. What makes this provision particularly impactful is not just its intent, but its retrospective application from 1st April 2021,… […]
Section 221 Penalty: Time Limit, Mandatory Order & Approval Requirement Explained
Section 221 Penalty: Time Limit, Mandatory Order & Approval Requirement Explained Section 221 of the Income Tax Act is often invoked by the department when there is a delay in payment of tax demand. While the provision appears straightforward, its procedural aspects give rise to several important legal questions. Among the most debated issues are:… […]
Unsigned ‘Dumb Document’ Not Incriminating Material – 153C Proceedings Quashed
Unsigned ‘Dumb Document’ Not Incriminating Material – 153C Proceedings Quashed In a significant ruling that strengthens taxpayer protection against mechanical invocation of search provisions, the ITAT Hyderabad has held that proceedings under Section 153C cannot be initiated merely on the basis of an unsigned agreement of sale seized from a third party. The decision reiterates… […]
Section 221 Penalty: When Delay in Tax Payment Becomes Costly
Section 221 Penalty: When Delay in Tax Payment Becomes Costly In the complex world of income tax compliance, one of the most frequently misunderstood provisions is Section 221 of the Income Tax Act, 1961. Many taxpayers assume that once a demand is raised, delay in payment will only attract interest. However, the law goes… […]
