Income Tax Amendment Of 2012 Allowing Officers To Dispute Any Property Value Not Retroactive: Gujarat High Court

The Gujarat High Court ruled that the 2012 amendment to Section 55A(a) of the Income Tax Act, which expanded the Assessing Officer's power to refer capital assets for valuation, cannot be applied retrospectively.The court ruled that assessments relating to the period prior to 1 July 2012 would continue to be governed by the unamended provision and, on that basis, quashed a reassessment notice issued to the assessee.A Division Bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati passed...

Gujarat High Court Quashes Reassessment Based On Presumption Drawn From Sister Concern's 'On-Money' Collection

The Gujarat High Court has quashed reassessment proceedings initiated under the Income Tax Act, holding that a completed assessment cannot be reopened merely on the presumption that an assessee collected unaccounted cash ("on-money") from buyers over and above the recorded sale price because its sister concern was found to have done so. The court held that the reopening against Datta Projects was based entirely on presumptions and surmises, without any material linking the assessee to...

Order Quashing Notice To Dead Person Is Not A 'Finding' To Issue Fresh Notice To Legal Heirs: Allahabad HC

The Allahabad High Court on 23 July held that an order quashing a reassessment notice issued in the name of a deceased person as void ab initio cannot be treated as a “finding” or “direction” under Section 150(1) of the Income Tax Act, 1961. A Bench of Justices Shekhar B. Saraf and Abdhesh Kumar Chaudhary quashed the reassessment proceedings initiated against Smt. Asha Dubey, holding that the Income Tax Department cannot rely on an order quashing a notice issued in the name of a deceased...

Allahabad High Court Flags Loophole In Income Tax Law On Reassessment After Taxpayer's Death

While holding that a reassessment notice under Section 148 of the Income Tax Act cannot be issued in the name of a dead assessee, the Allahabad High Court at Lucknow recently observed that the Act contains a legislative lacuna because it leaves the Revenue unable to initiate reassessment proceedings where an assessee dies before a valid reassessment notice is issued. Holding that the gap could result in escaped income going untaxed and prejudice the public exchequer, the court observed that...

Revenue Cannot Appeal Assessment Order Under Income Tax Act, Can Only Seek Revision: Allahabad High Court

The Allahabad High Court has recently held that under the Income Tax Act, 1961, the revenue has no right of appeal against an assessment order, as the assessment order is the stated case of the revenue itself. It held that where the revenue is aggrieved by an assessment order, its remedy is to seek revision where the assessment order is found to be "erroneous in so far as it is prejudicial to the interest of revenue." The court held that in an assessment proceeding the Assessing Authority...

NFAC Must Provide Video Conferencing If Assessee Seeks Personal Hearing: Delhi High Court

The Delhi High Court has held that a taxpayer who seeks a personal hearing during appellate proceedings before the NFAC is entitled to such a virtual hearing.“There are various issues which can be better explained with the help of personal or virtual assistance by assessee or its authorised representative. Mere written submissions or memo of appeal are not sufficient for proper adjudication,” division bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta observed.The court thus set aside an...

Assessing Officer Not Deemed to Have Noticed Facts Disclosed in Wealth Tax Return: Gujarat High Court

The Gujarat High Court has recently held that an Assessing Officer is not deemed to have noticed facts disclosed in a wealth tax return while examining an income tax return. It refused to interfere with reassessment proceedings initiated against a Hindu Undivided Family (HUF) over an unexplained cash payment of more than ₹1.02 crore towards the purchase of immovable property. A Division Bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati dismissed the writ petition filed by...

Gujarat High Court Bars Vimal Oil Reassessment Over Past Tax Liability, Cites IBC Clean Slate Principle

The Gujarat High Court on 30 June quashed reassessment proceedings against Vimal Oil and Foods Ltd., holding that the Assessing Officer cannot reopen an assessment of a company sold as a going concern under the Insolvency and Bankruptcy Code (IBC) on mere assumptions without verifying whether any income had actually escaped assessment. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati allowed the batch of writ petitions filed by the company and quashed the notice issued under...

Delhi HC Allows SC, HC Judges To Show Allowances As 'Receipts Not In Nature Of Income' Under New Tax Regime

The Delhi High Court, by way of an interim direction, has allowed Supreme Court and High Court judges to file their income tax returns by showing prescribed judicial allowances as “receipts not in the nature of income”, even while opting for the new tax regime.The order came in a petition filed by the Delhi Tax Bar Association challenging a September 12, 2025, Office Memorandum issued by the CBDT, which, according to the petitioner, denied judges opting for the new tax regime the benefit of...

ITAT Mumbai Grants LTCG Relief To Taxpayer, Rejects Revenue's Claim That Scrip Was Penny Stock

The Mumbai Income Tax Appellate Tribunal (ITAT) has allowed an individual taxpayer's claim for exemption on long-term capital gains arising from the sale of shares after finding that the transactions were genuine and supported by documentary evidence. It observed that there was nothing on record to establish that the company whose shares were sold was a penny stock. The tribunal also found no material linking the assessee to any alleged accommodation entry operators.Judicial Member Sandeep...

Telangana High Court Restores Relief To Radiant Digital Solutions, Says Bona Fide Lapse Can't Deny Benefit

The Telangana High Court on 2 July held that a company cannot be denied the benefit of the concessional corporate tax regime under Section 115BAA of the Income Tax Act due to a bona fide delay in filing Form 10-IC, where it has substantially complied with the statutory requirements. A Division Bench of Justices P. Sam Koshy and Narsing Rao Nandikonda allowed the writ petition filed by Radiant Digital Solutions Pvt. Ltd. and set aside the Income Tax Department's order rejecting the company's...

ITAT Delhi Deletes ₹5.19 Crore AMP Adjustment Against Fujifilm India Following Sony Ericsson Ruling

The Delhi Income Tax Appellate Tribunal (ITAT) on 20 July held that a transfer pricing adjustment for Advertising, Marketing and Promotion (AMP) expenditure cannot be sustained when it is computed by applying the Bright Line Test (BLT), following the Delhi High Court's ruling in Sony Ericsson Mobile Communications India Pvt. Ltd. A Bench of Accountant Member Ramit Kochar and Judicial Member Sudhir Kumar partly allowed the appeal filed by Fujifilm India Pvt. Ltd. and deleted the Rs. 5.19 crore...