When an NRI sends money to parents in India, the transfer is generally not taxable merely because the recipient is an Indian resident. However, a large or unusual credit appearing in a parent’s bank account may attract questions from the Income …
Large cash transactions often attract close attention from the Income Tax Department, particularly when substantial cash is deposited into a bank account after a significant period of time. However, a cash deposit cannot automatically be treated as unexplained income merely …
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has delivered an important ruling on the availability of Section 54F exemption where a residential property is purchased from a spouse. In Neha Karan Motwani v. ITO, the Tribunal rejected the Revenue’s …
Understanding tax audit applicability under Section 44AB of the Income-tax Act, 1961 is essential for businesses and professionals before finalising their books and income-tax returns for FY 2025-26 (AY 2026-27). The requirement to obtain a tax audit depends primarily on the nature of …
The Telangana High Court has reiterated an important principle concerning income tax reassessment proceedings: an assessee should ordinarily raise objections regarding the jurisdiction, validity and statutory compliance of reassessment proceedings before the Assessing Officer (AO) in the first instance, rather than approaching the …
The Delhi High Court has clarified that an advance received towards the sale of immovable property cannot automatically be treated as an unexplained cash credit under Section 68 of the Income Tax Act, 1961, in a later assessment year merely because …
The Income Tax Appellate Tribunal (ITAT), Visakhapatnam has delivered an important ruling on the limits of reassessment powers, holding that the Income Tax Department cannot use the amended provisions of Sections 148 and 148A of the Income Tax Act to …
The Andhra Pradesh High Court has delivered an important ruling on the scope of Section 119(2)(b) of the Income Tax Act, holding that an application seeking condonation of delay cannot be rejected merely because it was filed beyond a time limit …
The Chhattisgarh High Court has dismissed a writ petition challenging a property tax demand of approximately ₹19.75 lakh raised against Loyola Higher Secondary School, Bilaspur. The Court held that the educational institution could not claim exemption from property tax on the basis of …
The Karnataka High Court has ruled that a bank cannot unilaterally create a lien over a customer’s bank account for recovery of Tax Deducted at Source (TDS) allegedly payable on cash withdrawals under Section 194N of the Income Tax Act, …
The Delhi High Court has taken a strong view of the prolonged delay in granting an income tax refund to Campus Activewear Limited, directing the Assessing Officer (AO) to personally appear before the Court if the pending refund, along with …
The Bombay High Court has delivered an important ruling concerning R&D tax deduction under Section 35(2AB) of the Income Tax Act, holding that an application for the Department of Scientific and Industrial Research (DSIR) report cannot be rejected merely on the …
The Delhi High Court has directed the Income Tax Department to maintain status quo on recovery and penalty proceedings against two assessees who have challenged the constitutional validity of the newly introduced Section 147A of the Income Tax Act, 1961. The provision, inserted …
The Calcutta High Court has clarified an important principle concerning the powers of the Income Tax Appellate Tribunal (ITAT). The Court held that the Tribunal cannot make payment of litigation costs a condition for a taxpayer to exercise the statutory …
The Delhi High Court has ruled that an Assessing Officer (AO) cannot reject a taxpayer’s share valuation merely because he disagrees with the expected rate of return or commercial assumptions used by a recognised valuation method. In an important ruling …
The Supreme Court has held that an assessee cannot use a revision petition under Section 264 of the Income Tax Act, 1961, as an alternative route to make changes to a self-assessment return after the statutory period for filing a revised …
The Income Tax Appellate Tribunal (ITAT), Agra Bench, has deleted a substantial addition of ₹2,40,29,635 under Section 68 of the Income Tax Act, 1961, relating to cash deposits made during the demonetisation period by a firm engaged in the trading and …
The Delhi High Court has sought a response from the Union Government and the Central Board of Direct Taxes (CBDT) on a Public Interest Litigation (PIL) seeking an automatic mechanism for refund of Tax Deducted at Source (TDS) to individuals …
ITAT Chennai has deleted a ₹76.45 lakh addition made under Section 69 read with Section 115BBE of the Income-tax Act, holding that cash deposits cannot be treated as unexplained merely because there was a substantial time gap between the original …
In a significant ruling on international taxation, the Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that a Permanent Establishment (PE) in India cannot be inferred merely on assumptions that employees of a foreign parent company were rendering services for another …