Non-Complince with CBDT’s 143(2) Notice Format Renders Assessment Invalid: Kolkata ITAT
Non-Complince with CBDT’s 143(2) Notice Format Renders Assessment Invalid: Kolkata ITAT In tax jurisprudence, procedure is not a mere technicality- it is a matter of jurisdiction. The Income Tax Appellate Tribunal (Kolkata Bench) has recently reaffirmed that any notice issued under Section (2) which does not comply with the format prescribed by CBTD is… […]
ITAT Jaipur Estimates Profit at 1.52% on Turnover of Rs. 7.96 Crores Amid Audit Lapses and Cash Irregularities
ITAT Jaipur Estimates Profit at 1.52% on Turnover of Rs. 7.96 Crores Amid Audit Lapses and Cash Irregularities The ITAT Jaipur noted that the assessee failed to file a tax audit report despite having substantial turnover and declared a meagre NP of 0.187%. The AO invoked Section 145(3) and applied a 10% disallowance on… […]
Entire purchases cannot be disallowed; only profit embedded in unverifiable purchases can be taxed: ITAT Delhi
Entire purchases cannot be disallowed; only profit embedded in unverifiable purchases can be taxed: ITAT Delhi ITAT Delhi decision in the case of DCIT, Circle Hisar vs. Tirupati Matsup Pvt. Ltd. (ITA No. 3326/Del/2023, CO No. 4/Del/2024), dated May 16, 2025, on the issue of unverifiable purchases and Section 69C: Assessee: Tirupati Matsup Pvt. Ltd…. […]
Controversy surrounding section 194T- TDS on Interest & Remuneration to the Partners
Controversy surrounding section 194T- TDS on Interest & Remuneration to the Partners The amendment u/s 194T brings with it a set of real-world challenges for partnership firms. While the intent is clear- to ensure transparency and compliance-there are significant hurdles that need thoughtful consideration: 1. Impractical TDS Deposit Timelines As per Section 200, TDS… […]
Multiple Floors in a Single Building Constitute One Residential House Under Section 54F
Multiple Floors in a Single Building Constitute One Residential House Under Section 54F In a landmark judgment, the Delhi High Court has provided much-needed clarity on the interpretation of “one residential house” under Section 54F of the Income Tax Act, 1961. Let us have a Short Overview of the case: Case Overview: Assessee:… […]
Expenditure towards salaries and wages could not be represented as ‘asset’ as per section 149(1)(b)- Reassessment proceedings beyond 3 years quashed by Delhi HC
Expenditure towards salaries and wages could not be represented as ‘asset’ as per section 149(1)(b)- Reassessment proceedings beyond 3 years quashed by Delhi HC The Delhi High Court in the case of Ratnagiri Gas and Power Private Limited [TS-562-HC-2025(DEL)] recently quashed the reassessment proceedings, inter-alia, on the ground that proceedings initiated beyond 3 years… […]
Review Petition filed by the Revenue against the judgment in Safari Retreats dismissed by SC
Review Petition filed by the Revenue against the judgment in Safari Retreats dismissed by SC Hon’ble Supreme Court, on 20.05.2025, dismissed the Review Petition filed by the Revenue against the judgment passed in the case of Safari Retreats (Civil Appeal No. 2948 of 2023). The copy of the order is as under: The […]
ITAT allowed deduction towards interest paid against FDR Interest as it was business-linked and served as collateral for loan facilities
ITAT allowed deduction towards interest paid against FDR Interest as it was business-linked and served as collateral for loan facilities ITAT Mumbai in the case of Global Tradex Ltd. v. ACIT has allowed deduction towards interest paid against FDR Interest as it was business-linked and served as collateral for loan facilities Let us have a Short… […]
Slump Sale: Non-transfer of receivables shown as consideration due did not violate slump sale conditions
Slump Sale: Non-transfer of receivables shown as consideration due did not violate slump sale conditions In the case of slump sale, meticulous drafting of business transfer agreements is crucial. Substance over form prevails in tax treatment. Proper use of Form 3CEA is key—but does not override the slump sale nature. A well-structured deal and… […]
No Justification for Revisional Action Under Section 263 Based on Mere Opinion Divergence.
No Justification for Revisional Action Under Section 263 Based on Mere Opinion Divergence. The assessee, Ganesh Srinivasan, a Senior Advocate, filed his return of income for AY 2020–21 under the cash system of accounting. The AO completed the assessment under Section 143(3) r.w.s. 144B after accepting the assessee’s explanation for the mismatch between professional… […]
