Section 44AD vs 44ADA: Can Wrong TDS u/s 194J Turn Business Income into Professional Income? A Growing Litigation Issue
Section 44AD vs 44ADA: Can Wrong TDS u/s 194J Turn Business Income into Professional Income? A Growing Litigation Issue A new and increasingly common controversy is emerging in income tax assessments—Assessing Officers are treating income as “professional income” merely because TDS was deducted under Section 194J, and forcing taxpayers into Section 44ADA instead of… […]
ITAT Can Recall Its Order If Binding Precedent Is Ignored | Section 254(2) Gets Strong Backing
ITAT Can Recall Its Order If Binding Precedent Is Ignored | Section 254(2) Gets Strong Backing In a significant ruling reinforcing judicial discipline, the Delhi ITAT has held that failure to follow binding judicial precedent is a “mistake apparent from record” and can be rectified under Section 254(2) of the Income-tax Act. This decision strengthens the… […]
Section 50C & Section 54 – MOU vs Registration Date | ITAT Mumbai
Section 50C & Section 54 – MOU vs Registration Date | ITATba Mumbai Facts: 1. The assessee, an individual, was allotted a residential flat in February 2004 and was placed in possession thereof. In March 2005, he entered into a Memorandum of Understanding (MOU) for sale of the said flat for a total consideration of… […]
New Income Tax Act 2025: Fewer Forms, Smarter TDS & Simpler Compliance (Part-3)
New Income Tax Act 2025: Fewer Forms, Smarter TDS & Simpler Compliance (Part-3) For most taxpayers, TDS & TCS are not just provisions — they are silent partners in every transaction. Whether you earn salary, receive interest, pay rent or buy property, tax quietly gets deducted or collected along the way. Under the new Income… […]
Section 263 Revision Cannot Be Based on “Deeper Inquiry” | ITAT Draws Clear Line between No Inquiry and Inadequate Inquiry
Section 263 Revision Cannot Be Based on “Deeper Inquiry” | ITAT Draws Clear Line between No Inquiry and Inadequate Inquiry In a significant ruling on the scope of revisionary powers under the Income-tax Act, the Tribunal has once again clarified that Section 263 cannot be invoked merely because the Principal Commissioner (PCIT) believes that a… […]
TDS Credit Cannot Be Denied Due to 26AS Mismatch Under Section 143(1) | ITAT Delhi Declares Such Adjustments Illegal
TDS Credit Cannot Be Denied Due to 26AS Mismatch Under Section 143(1) | ITAT Delhi Declares Such Adjustments Illegal In a significant ruling strengthening taxpayer rights, the Delhi ITAT has held that TDS credit cannot be denied merely due to mismatch between Form 26AS and the return of income while processing under Section 143(1). The… […]
If the investment is yours, the exemption is yours—even if the property is registered in someone else’s name: Section 54F exemption allowed even if Property Registered in others name
If the investment is yours, the exemption is yours—even if the property is registered in someone else’s name: Section 54F exemption allowed even if Property Registered in others name In a significant and practical ruling, the Tribunal has held that deduction under Section 54F cannot be denied merely because the new residential property is registered in… […]
Search Assessment u/s 153A Fails Without Fresh Incriminating Material | ITAT Strikes Down Additions Based on ED Evidence & Mechanical Approval u/s 153D
Search Assessment u/s 153A Fails Without Fresh Incriminating Material | ITAT Strikes Down Additions Based on ED Evidence & Mechanical Approval u/s 153D Search assessments under the Income-tax Act are often perceived as the strongest weapon in the hands of the tax department. However, a recent Tribunal ruling has once again reinforced a critical… […]
Incentives under the Package Scheme of Incentives in Maharashtra is taxable under the Income Tax Act
Incentives under the Package Scheme of Incentives in Maharashtra is taxable under the Income Tax Act The taxability of government subsidies has long been a debated issue under the Income-tax Act, but one principle continues to dominate the discussion-the “purpose test.” A recent Tribunal ruling has once again clarified that government subsidy not attributable to a specific asset… […]
BSNL Ex-Gratia Scheme: ITAT Allows Full Exemption Despite 1400+ Days Delay – Big Relief for Taxpayers
BSNL Ex-Gratia Scheme: ITAT Allows Full Exemption Despite 1400+ Days Delay – Big Relief for Taxpayers In a significant and taxpayer-friendly ruling, the Pune ITAT has delivered much-needed relief to individuals who opted for the BSNL revival scheme and ended up paying tax due to incorrect reporting. The decision clarifies a crucial issue: ex-gratia… […]
