CIT v. Reliance Petroproducts Pvt. Ltd. (2010) 322 ITR 158 (Supreme Court) is a landmark ruling where the Supreme Court held that mere making of a claim which is not sustainable in law does not by itself amount to furnishing inaccurate particulars or concealment of income. If the assessee has disclosed all material facts in… (read more)

A1. No, this does not fall within section 244A(2) merely because Form No. 10 was filed late. S. 244A(2) excludes interest only for the specific period of delay in the proceedings resulting in the refund that is attributable to the assessee (e.g., late response to notices, incomplete filing causing processing delay). The proceedings have not… (read more)

Approval u/s 151 is not required for issuing the SCN u/s 148A(b). In the reply, you may point out that the search was on a third party and mere recovery of a document does not constitute "information suggesting escapement of income" and has to be independently verified by the AO. You will have to deal… (read more)

As the income escaping assessment is ₹50 lakh or more, the SCN u/s 148A(b) can be issued within 5 years and 3 months from the end of the relevant AY. (read more)

It is well settled that ab addition u/s 69 cannot be made solely on the basis of a "dumb" document. Corroboration in the form of cash or undeclared property is required. In Nirmala Pennechand Sarda v. ITO (ITAT Mumbai), the ITAT held that additions based solely on vague, third-party "rough loose papers" seized during a… (read more)

For FY 2025-26, the old Act applies. The new Act does not affect ITRs filed for FY 2025-26. It applies only from FY 2026-27. New Income Tax Act 2025 merges old Sections 44AD, 44ADA & 44AE into a single Section 58 (Presumptive Taxation Scheme). Key features are nearly the same. Most small genuine low-margin businesses/professionals… (read more)

As the flat is held for over 24 months, it qualifies as a long-term capital asset. The redevelopment cost can be claimed as cost of acquisition/improvement and indexed appropriately (using the CII for FY 2023-24). As you acquired the property before 23.07.2024, you have the choice of paying either 12.5% of the gain without indexation… (read more)

U/s 45(5A), the capital gain due to the redevelopment will arise in the year the CC is granted. The consideration will be the stamp duty value on the date of CC. The cost and holding period will be that of your father. The capital gain can be claimed exempt u/s 54 if you satisfy the… (read more)

The gains will be assessed as STCG because the redeveloped portion is held for less than 24 months. Its holding period starts from the date of OC or possession (05/08/2025) and not from the inheritance date (07/02/2019) or redevelopment agreement (25/11/2022). (read more)

The AO has judicial discretion u/s 270A(1) not to levy penalty if he is satisfied that the circumstances are genuine. Immunity u/s 270AA is also available in genuine under-reporting cases provided procedural conditions are met. The AO has no power to waive u/s 273A. However, the PCIT/CIT has power to waive or reduce penalty if… (read more)