Supreme Court Dismisses Revenue Plea Against Gujarat HC Order Quashing Adani Wilmar Income Tax Reassessment

The Supreme Court on Monday refused to interfere with a Gujarat High Court judgment that had quashed the reopening of Adani Wilmar Limited's income tax assessment for the 2013–14 assessment year, dismissing a special leave petition filed by the revenue. A Bench of Justice B. V. Nagarathna and Justice Ujjal Bhuyan said it was not inclined to step in after examining the record. “Having regard to the facts of this case, we are not inclined to interfere in the matter. The SLP is dismissed. The...

ITAT Amritsar Directs Fresh Verification Of Rs. 1.03 Crore Deposits By Jewellery Company During Demonetisation

The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) last month remanded a demonetisation-related reassessment case to the Assessing Officer for fresh verification of purchase bills, sale bills, and receipt vouchers that were not examined at the assessment stage. A Bench comprising Manoj Kumar Aggarwal, Accountant Member, and Udayan Dasgupta, Judicial Member was hearing an appeal by Chand Jewellers, a partnership firm engaged in gold jewellery business against the confirmation of an...

Direct Tax Weekly Round-Up: January 26 - February 01, 2026

SUPREME COURTSupreme Court Issues Notice In Appeal Against Order Quashing IT Assessments On Entities Merged Into Reliance IndustriesCase Title : Deputy Commissioner of Income Tax, Special Range-18, Mumbai v. Reliance Industries Limited Case Number : Diary No. 67659-2025The Supreme Court on Tuesday issued notice on an appeal filed by the Revenue challenging a Bombay High Court ruling that had quashed income tax assessments against Reliance Polyethylene Ltd. and Reliance Polypropylene Ltd....

IT Reassessment Notices Issued After Limitation Period Invalid Despite Ashish Agarwal Ruling: Karnataka High Court

The Karnataka High Court has recently held that reassessment proceedings initiated after the expiry of the statutorily surviving period of limitation under the Income Tax Act are invalid. This remains so even where the revenue seeks to sustain the reassessment notice on the basis of the Supreme Court's directions in Union of India v. Ashish Agarwal. In Ashish Agarwal, the Supreme Court protected reassessment notices issued under the old law during the transition to the new reassessment regime...

Budget 2026-27 Proposes 12-Month Window From Assessment Year End To File Revised Income Tax Returns

As per the proposals in the Union Budget 2026–27, the government has proposed extending the time limit for filing a revised income tax return from the existing nine months to twelve months from the end of the relevant assessment year.At present, the deadlines for filing a belated return under Section 139(4) and a revised return under Section 139(5) coincide, both expiring nine months from the end of the relevant assessment year. As a result, taxpayers who file a belated return towards the end of...

Budget 2026-27 Proposes Tax Relief On Compensation Received For Compulsory Land Acquisition

In the Union Budget 2026, the Finance Minister has proposed to exempt income in respect of any award or agreement arising from the compulsory acquisition of land under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) from income tax, with effect from Assessment Year 2026–27. Under the existing framework, Schedule III of the Income-tax Act provides certain exemptions in respect of capital gains, but does not expressly...

Budget 2026-27: No TAN Needed For Resident Buyers To Deduct TDS On Property Purchases From NRIs

As per a proposal in the Union Budget 2026 tabled by Finance Minister Nirmala Sitharaman today, resident individuals and Hindu Undivided Families (HUFs) purchasing immovable property from a non-resident (NRI) will no longer be required to obtain a Tax Deduction and Collection Account Number (TAN) for the purpose of deducting tax at source. Instead, the tax deducted can be deposited using the Permanent Account Number (PAN) of the buyer.The proposal sought to amend Section 397(1)(c) of the Income...

BREAKING | Any Delay In Income Tax Audit Report May Attract ₹75,000 Late Fee, Proposes Finance Bill 2026

A single day's delay in furnishing a tax audit report may attract a fee of ₹75,000 under the proposed Income-tax Act, 2025, as per the scheme set out in the Finance Bill, 2026.The Finance Bill, 2026 was presented in Parliament by Finance Minister Nirmala Sitharaman on Sunday.Under the existing law, failure to comply with tax audit requirements attracted a penalty linked to turnover, capped at ₹1.5 lakh, and the penalty could be waived if the taxpayer showed a reasonable explanation for the...

Union Budget 2026: FM Proposes Major Income Tax Changes

Presenting the Union Budget 2026, the Finance Minister Nirmala Sitharaman proposed the replacement of the Income Tax Act, 1961 with a new Income Tax Act, 2025, to come into force from April 1, 2026, alongside a series of reforms to the direct-tax regime. The Finance Minister said a comprehensive review of the six-decade-old law, announced in July 2024, had been completed in record time. Simplified Income Tax Rules and new return forms will be notified shortly, with the stated objective...

Mere Doubts On Cash Utilisation Insufficient For Section 69A Additions: ITAT Mumbai

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 23 January, held that that additions under Section 69A cannot be made merely on doubts about utilisation, if the source of cash withdrawals is from disclosed bank accounts. A Bench of Judicial Member Sandeep Gosain and Accountant Member Om Prakash Kant dismissed three appeals filed by the Revenue against FA Construction (the taxpayer) and upheld the orders of the Commissioner of Income-tax (Appeals) deleting...

Supreme Court To Examine If PF, ESI Deposits Late Under Welfare Laws but Paid Before IT Return Are Deductible

The Supreme Court has recently said that it will examine a long-standing dispute under the Income Tax Act on whether employees' provident fund and ESI contributions, deposited late under labour welfare laws, can still be allowed as deductions if paid before the income tax return due date. A Bench of Justice J.B. Pardiwala and Justice Sandeep Mehta, while hearing a petition filed by Woodland (Aero Club) Private Limited, noted that High Courts across the country have taken conflicting views on...

'Reason To Believe' Not Required To Inspect Seized Jewellery Under Income Tax Act: Calcutta High Court

The Calcutta High Court on 28 January dismissed a writ petition challenging inspection notices issued by the Income Tax Department for jewellery and bullion seized during a search operation, holding that the revenue authorities are not required to disclose the information or reasons that prompted the inspection, so long as it is undertaken for purposes permitted under the Income Tax Act (IT Act), 1961. Justice Om Narayan Rai delivered the ruling while examining a challenge to notices issued...