AO Cannot Reopen Assessment On Same Material To Cure Lapse In Original Proceedings: Gujarat High Court

The Gujarat High Court on 24 February ruled that the Revenue cannot initiate reassessment proceedings under Section 148 of the Income Tax Act based on the same material that was already scrutinised in the original proceedings, which later lapsed due to the Assessing Officer's failure to meet the statutory deadlines. The Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi held that reopening an assessment in such circumstances is an impermissible attempt to “camouflage”...

DTVSV Scheme 2024 Inapplicable To Reassessments Arising From Search Proceedings: Gujarat High Court

The Gujarat High Court on 18 February held that taxpayers whose reassessment proceedings arise from incriminating material discovered during search operations under Sections 132 or 132A of the Income Tax Act are not eligible to avail the benefit of the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi dismissed a batch of writ petitions led by Radha Madhav Eco-Industrial Park, which challenged the rejection of their...

ITAT Mumbai Deletes Additions On Individual Taxpayer, Rules Cash Redeposits Not “Unexplained”

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) on 25 February deleted additions made on cash deposits in the bank account of an individual taxpayer, holding that redeposits of earlier withdrawals cannot be treated as unexplained money in the absence of evidence that the cash was used elsewhere. A Bench comprising Accountant Member Om Prakash Kant and Judicial Member Kavitha Rajagopal allowed the appeals of the taxpayer, Nitinkumar Pravinchandra Kacharia, for Assessment Years...

Supreme Court Refuses To Entertain Plea Challenging Search Powers Over Digital Devices Under Income Tax Act, 1961, And 2025 Act

The Supreme Court on Monday declined to entertain a petition challenging the constitutional validity of the search and seizure powers over digital devices under Section 132 of the Income Tax Act, 1961, and its corresponding provision, Section 247 of the Income Tax Act, 2025, which is set to come into force from April 1, 2026.A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi, however, permitted the petitioner to submit a representation to the Government of India seeking...

Builder Incentives For Timely Payment Cannot Be Taxed As 'Income from Other Sources': ITAT Delhi

The New Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 26 February held that rebates or concessions provided by a builder under an apartment buyer's agreement cannot be treated as taxable income under Section 56 of the Income Tax Act, 1961. A Bench comprising Judicial Member Anubhav Sharma and Accountant Member Manish Agarwal was hearing the appeal filed by Satya Prasan Rajguru against the order of the National Faceless Appeal Centre, which had confirmed the additions made by the...

ITAT Delhi Upholds Tax Incentive For Big Babol, Mentos Maker Perfetti's Uttarakhand Unit

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the order allowing confectionery manufacturer Perfetti Van Melle India Pvt. Ltd. to claim tax deduction under Section 80-IC of the Income Tax Act on profits from its Rudrapur manufacturing unit in Uttarakhand. Section 80-IC grants profit-linked tax incentives to manufacturing units located in notified industrial areas of certain states, including Uttarakhand, subject to specified conditions. A bench of Judicial Member...

Transfer Pricing Adjustment Cannot Amount To 'Misreporting of Income': Madras High Court Quashes Penalty On Verizon

The Madras High Court has recently quashed penalty proceedings against Verizon Data Services India Pvt Ltd, holding that a transfer pricing adjustment based on estimation of arm's length price cannot by itself constitute “misreporting of income” under Section 270A of the Income Tax Act.A single-bench of Justice C. Saravanan, while quashing the penalty order and rejection of its immunity application against Verizon observed,"The entire basis for initiation of penalty proceedings is the transfer...

ITAT Delhi Upholds Deletion Of ₹1.34 Crore Tax Addition Against NDTV

The Income Tax Appellate Tribunal (ITAT) at Delhi on Friday upheld relief granted to New Delhi Television Ltd. (NDTV) in a dispute over a Rs 1.34 crore disallowance under Section 14A of the Income Tax Act for the assessment year 2010–11. The tribunal held that expenditure cannot be disallowed under the provision where the taxpayer has not earned any tax-exempt income during the relevant year. A bench comprising Judicial Member Madhumita Roy and Accountant Member Manish Agarwal dismissed the...

Limitation For TDS Default Orders Runs Quarter-Wise, Not Annually: Bombay High Court

The Bombay High Court has recently held that limitation for passing an order treating a person responsible for deducting tax at source as an “assessee in default” under Section 201 of the Income Tax Act must be computed quarter-wise based on the filing of each TDS statement, and not on an annual or cumulative basis. A Division Bench of Justice M.S. Karnik and Justice Gautam A. Ankhad on March 5, 2026 dismissed the Income Tax Department's appeal against Vodafone Cellular Ltd., Pune. In doing...

ITAT Delhi Quashes Reassessment Against Lalit Modi Over Credit Card, Private Jet Expenses

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed reassessment proceedings initiated against former IPL commissioner Lalit Kumar Modi over alleged unexplained credit card expenditure and private jet costs. The tribunal held that reassessment cannot be initiated while regular scrutiny assessment proceedings are still pending.A bench of Judicial Member Vikas Awasthy and Accountant Member Brajesh Kumar Singh held that the reassessment was without jurisdiction. It observed that...

Penalty Invalid Where AO Issues Stereotypical Notice Without Specifying Charge: ITAT Delhi

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 25 February quashed an income tax penalty imposed on an taxpayer, after finding that the Assessing Officer issued a stereotypical penalty notice without specifying the exact charge under the Income Tax Act. A Tribunal Bench comprising Judicial Member Yogesh Kumar U.S. and Accountant Member Renu Jauhri held that a notice issued must clearly state whether the penalty proceedings are initiated for “concealment of income” or “furnishing...

No Cancellation Of Educational Trust Registration For Generating Surplus: Punjab & Haryana High Court

The Punjab and Haryana High Court on 27 February held that mere generation of surplus by an educational institution cannot be a ground for cancelling registration of a charitable trust, so long as the activities are genuine and carried out in accordance with the objects of the trust. A Division Bench comprising Justice Lisa Gill and Justice Parmod Goyal dismissed an appeal filed by the Income Tax Department and upheld the order of the Income Tax Appellate Tribunal (ITAT) restoring the...