When the original reason fails, the AO cannot make any other addition in a reassessment proceeding: ITAT
When the original reason fails, the AO cannot make any other addition in a reassessment proceeding: ITAT Recently, ITAT has again followed the Bombay High Court in Jet Airways rule and held that when the original reason fails, the AO cannot make any other addition, making the entire reassessment invalid. As a result, the ₹5.65… […]
Addition done during assessment is invalid if it is done without waiting for the DVO Report: ITAT Ahmedabad
Addition done during assessment is invalid if it is done without waiting for the DVO Report: ITAT Ahmedabad Recently, in Rajni Arvind Birla v. ITO (ITA No. 930/Ahd/2025), the ITAT Ahmedabad held that an assessment under Section 143(3) is invalid if the AO completes it without waiting for the DVO’s valuation after a valid… […]
Section 153C Notice invalidated by Gujarat HC for Inordinate Delay in Recording Satisfaction Note
Section 153C Notice invalidated by Gujarat HC for Inordinate Delay in Recording Satisfaction Note The recent judgment of the Gujarat High Court in Parag Rameshbhai Gathani vs. Income-tax Officer (18 November 2025) is an important reaffirmation of the procedural discipline required in search-related proceedings under Section 153C of the Income-tax Act. In this matter, a… […]
It is incorrect to deny ITC to recipient/buyer for genuine purchase , for default in compliance to show sales in GSTR 1 by supplier
It is incorrect to deny ITC to recipient/buyer for genuine purchase , for default in compliance to show sales in GSTR 1 by supplier In the case of M/s McLeod Russel India Limited vs. The Union of India & Ors., the Hon’ble Gauhati High Court addressed the constitutional validity of Section 16(2)(aa) of the… […]
Applicability of Section 54F Where Assessee Holds a Jointly-Owned Residential Property
Applicability of Section 54F Where Assessee Holds a Jointly-Owned Residential Property ITAT Delhi recently in the case of Kusum Sahgal v. ACIT – ITAT Delhi Bench-Assessment Year: 2015–16, Order Date: 08.11.2023 was having an interesting issue as to whether exemption under Section 54F can be denied merely because the assessee holds a joint ownership… […]
Merely because a registered sale deed was not executed, the genuineness of consideration received under agreement to sell cannot be doubted
Merely because a registered sale deed was not executed, the genuineness of consideration received under agreement to sell cannot be doubted Recently, ITAT Delhi in the case of Anand Prakash Singh vs. ACIT, Circle-2, Ghaziabad – ITA No. 3537/Del/2024 | Order dated 21 November 2025 was having an issue of unexplained Capital Introduction under… […]
Lack of definitive quantum of escapement and change of opinion: Gujarat HC held reopening invalid
Lack of definitive quantum of escapement and change of opinion: Gujarat HC held reopening invalid The assessee had recorded purchases of ₹58.05 crore from Ruchita Chemicals LLP, which were thoroughly examined and accepted in the original assessment under Section 143(3). From these funds, Ruchita Chemicals LLP advanced ₹7 crore to M/s Invent Asset Securitization and Reconstruction… […]
Section 153C arises only upon timely recording of satisfaction. If this foundational step is delayed without justification, subsequent actions lose legal validity: Gujarat HC
Section 153C arises only upon timely recording of satisfaction. If this foundational step is delayed without justification, subsequent actions lose legal validity: Gujarat HC The recent judgment of the Gujarat High Court in Parag Rameshbhai Gathani vs. Income-tax Officer (18 November 2025) is an important reaffirmation of the procedural discipline required in search-related proceedings… […]
Raipur ITAT on Penny Stock Addition: Not permissible mechanically without any direct evidence showing the assessee’s involvement in rigging or providing/receiving accommodation entries
Raipur ITAT on Penny Stock Addition: Not permissible mechanically without any direct evidence showing the assessee’s involvement in rigging or providing/receiving accommodation entries A recent decision of the ITAT Raipur in Anju Parekh vs. ITO (20 November 2025) offers important clarity on assessments involving alleged penny-stock transactions. The assessee had carried out purchase and… […]
To have rectification power of ITAT under section 254(2), an issue must be self-evident without need for elaborate argument or re-examination.
To have rectification power of ITAT under section 254(2), an issue must be self-evident without need for elaborate argument or re-examination. An issue before the High court was regarding the power of ITAT in respect of rectification of its earlier order? Whether ITAT was justified in modifying its earlier orders by exercising powers under… […]
