The ITAT has taken the view that Notification No. 31/2023, increasing the limit u/s 10(10AA)(ii) to ₹25 lakh with effect from April 1, 2023 (i.e., AY 2024-25 and later), should be treated as retrospective and applicable to earlier years. To benefit from this, you will have to file a rectification application. The AO will probably… (read more)

No. In the absence of a valid assessment order, penalty is not leviable. The AO has to record his satisfaction in the assessment order, which is not possible as the assessment years are time-barred. (read more)

Yes, the rejection of a rectification application u/s 154 of the Income Tax Act, 1961 can be appealed u/s 246A before the CIT(A) within 30 days of the date of the order. (read more)

In AY 2021-22, leave encashment was exempt u/s 10(10AA)(ii) of the Income Tax Act, 1961 upto ₹3,00,000. Vide CBDT Notification No. 31/2023, the exemption limit for non-government employees has been increased to Rs 25,00,000 with effect from April 1, 2023. The ITAT has taken the view in Chandra Prakash Vashistha vs. ITO (ITAT Jaipur, ITA… (read more)

It is true that the ITAT has ruled that the Rs 25 lakh exemption has to be applied retrospectively for assessment years prior to FY 2023-24 on the logic that the limit increase accounts for inflation and salary growth and is a beneficial provision. However, the counter argument is that as the notification itself explicitly… (read more)

There are a number of judgements which hold that a genuine & bona fide difference in interpretation does not qualify as "misreporting" u/s 270A(9). It would also not be treated as "under-reporting" u/s 270A(2). It will have to be shown that the claim is plausible and supported by reasonable cause. The principles of law are… (read more)

(1) Family arrangements aren't limited by generations. However, as family arrangements are supposed to resolve disputes around ancestral property, they can effectively cover up to four generations. (2) It depends on the terms of the settlement. It it resolves pre-existing rights that the cousins had in the property, it can be argued that there is… (read more)

1. U/s 199 & Rule 37BA, TDS credit can be claimed in the assessment year in which the corresponding income is assessable. Since the advance received in FY 2024-25 is not recognized as income until the goods are supplied, the TDS credit should be claimed in AY 2026-27. 2. Credit will have to claimed in… (read more)

Since you are paying the installment to the builder, the total value of consideration (property value) to enter in Form 26QB is the original Builder Buyer Agreement value of 13,914,000. (read more)

The suggestion to file u/s 264 is more of a procedural nudge. You can ignore it as there is no loss of revenue and no adverse consequences upon you. The only minor benefit is that the record will be corrected. However, if a discrepancy is raised in the future, you can explain it at that… (read more)