ITAT Kolkata Restores Appeal Over CPC Notice Sent To Former Consultant, Condones 1,542-Day Delay

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 22 June held that authorities must condone delay where sufficient cause exists, particularly when tax communications are addressed to a former authorised representative and the taxpayer establishes lack of actual knowledge. Judicial Member George Mathan and Accountant Member Rakesh Mishra allowed the appeal filed by Angkur Moulik, set aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)], and restored the matter for...

Loan To Non-Shareholder Company Not Taxable As Deemed Dividend Under Section 2(22)(e): ITAT Kolkata

On 22 June, the Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) held that a loan received by a company cannot be taxed as deemed dividend under Section 2(22)(e) of the Income Tax Act merely because it has a common shareholder with the lending company, where the borrowing company itself is not a shareholder. Judicial Member George Mathan and Accountant Member Rakesh Mishra partly allowed JHV Steels Ltd.'s appeal against an order passed under Section 263 of the Income Tax Act and set...

ITAT Restores Appeal As Assessee Receives Order Intimation Belatedly, Accepts Envelope As Proof

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 22 June held that an appeal cannot be dismissed as time barred if filed within the statutory period computed from the date of service of the order. Judicial Member George Mathan and Accountant Member Rakesh Mishra set aside an Order of the Commissioner (Appeals) that had dismissed an appeal by Sudipta Traders Pvt. Ltd. without examining merits, and restored the matter for fresh adjudication. The Bench observed: "the appeal was...

Why Madras High Court Refused To Order Probe Into Tamil Nadu CM's Financial Disclosures In Election Affidavit?

The Madras High Court has recently refused to direct the Income Tax Department to investigate the financial disclosures made by Tamil Nadu Chief Minister and Tamilaga Vettri Kazhagam chief C. Joseph Vijay in his election affidavit. It held that disputes over such disclosures can only be adjudicated through an election petition and not in writ proceedings. A Division Bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan dismissed a writ petition seeking directions to...

IT Department Moves Supreme Court Against Delhi HC Order Quashing Reassessment Notices Against NDTV Founders

The Income Tax Department has challenged a Delhi High Court ruling that quashed reassessment proceedings against NDTV founders Dr. Prannoy Roy and Radhika Roy over interest-free loans received from RRPR Holdings Pvt. Ltd. The loans included about ₹21 crore advanced to Prannoy Roy and about ₹71 crore advanced to Radhika Roy.The Special Leave Petition is likely to be heard by a vacation bench of Justices R. Mahadevan and Alok Aradhe on June 30, 2026.The High Court judgment delivered by a Division...

Draft Assessment Order Required Only For 'Eligible Assessees' Under Faceless Assessment: Kerala High Court

The Kerala High Court has held that tax authorities conducting faceless assessments are not required to issue a draft assessment order before finalising proceedings in the case of ordinary assessees. Justice Ziyad Rahman A.A., while dismissing writ petitions filed by a partnership firm engaged in the real estate business, observed that the requirement applies only to "eligible assessees" specifically defined under the Income Tax Act. "The requirement of issuing a draft assessment order before...

ITAT Ahmedabad Upholds Relief To Adani Total Gas, Says No Exempt Income No Section 14A Disallowance

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 22 June reiterated that no disallowance can be made under Section 14A of the Income Tax Act where the taxpayer has not earned any exempt income during the relevant assessment year. Vice President Dr. B.R.R. Kumar and Judicial Member Rahul Chaudhary dismissed the Revenue's appeal and upheld the deletion of a Rs. 2.38 crore disallowance made against Adani Total Gas Ltd. for Assessment Year 2020-21. The Bench held: "It is an...

ITAT Ahmedabad Condones 388-Day Delay In Appeal, Cites Poor Advice From Tax Consultant

The Income Tax Appellate Tribunal (ITAT) at Ahmedabad has recently condoned a 388-day delay in filing an appeal by an educational institution. The tribunal found that the delay was caused by inadequate legal advice from its previous tax consultant and a bona fide belief that no further compliance was required. A bench of Vice President Dr. B.R.R. Kumar and Judicial Member Rahul Chaudhary set aside orders of the Commissioner of Income Tax (Appeals) passed through the National Faceless Appeal...

ITAT Mumbai Deletes ₹61.22 Crore TP Addition, Says Pending HC Appeal Doesn't Affect Earlier Binding Order

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted a transfer pricing adjustment of ₹61.22 crore. The tribunal held that a pending appeal before the Bombay High Court does not dilute the binding nature of an earlier coordinate bench decision unless it has been stayed or reversed by a superior judicial forum. A bench of Judicial Member Anikesh Banerjee and Accountant Member Om Prakash Kant and passed the order while allowing an appeal filed by LANXESS India Pvt. Ltd. ...

Property Investment Can't Be Taxed As Unexplained Income In Later Year If Paid Earlier: ITAT Ahmedabad

The Income Tax Appellate Tribunal (ITAT) in Ahmedabad has upheld the deletion of additions made against a taxpayer after finding that documentary evidence showed the disputed property investments were made in an earlier financial year and not during the assessment year under consideration. A bench of Vice President Dr. B.R.R. Kumar and Judicial Member Siddhartha Nautiyal dismissed the Income Tax Department's appeal against the relief granted by the Commissioner of Income Tax (Appeals). "It is...

Additional Evidence On Foreign Remittances Must Be Examined If It Goes To Root Of Matter: ITAT Ahmedabad

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that in reassessment proceedings involving unexplained foreign remittances, additional evidence relating to a taxpayer's overseas residency status and foreign business activities must be examined where it goes to the root of the controversy. Vice President Dr. B.R.R. Kumar and Judicial Member Siddhartha Nautiyal set aside the assessment in Mr. Jitendra Motilal Chawla's case and restored the matter to the Dispute Resolution...

ITAT Ahmedabad Holds Form 26AS Mismatch Alone Insufficient For Addition, Restores ₹42.34 Lakh Issue

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) on 17 June held that a mismatch between revenue reflected in Form 26AS and a taxpayer's books of account does not, by itself, justify an addition, and that such discrepancies require a proper reconciliation exercise before any addition can be sustained. Vice-President Dr. B.R.R. Kumar and Judicial Member Rahul Chaudhary allowed the appeal filed by Checkmate Services Pvt Ltd for statistical purposes and remanded the Rs. 42.34 lakh...