S. 273B refers to "reasonable cause" which depends on the facts of the case. Amongst the landmark judgements, you can consider Hindustan Steel Ltd. v. State of Orissa (1972) 83 ITR 26 (SC) which is a foundational judgment on penalties. The Supreme Court held that penalty is not automatic for every breach. It is a… (read more)

It appears to be a mistake. You will have to see their CCS rules. However, generally the position is that the earlier encashment is not deducted. You will have to file a representation and ask for reasons and reconsideration. If this fails you will have to approach the CAT. (read more)

Generally speaking, evidence in income tax investigations must be relevant, reliable, and obtained/handled in compliance with the Income-tax Act and procedural rules. (read more)

The new flat received from the developer itself qualifies as the reinvestment (“construction” of a new residential house) for purposes of s.54 and exempts the capital gains arising on redevelopment of the old flat. Alternatively, the assessee can use his funds to buy or construct a totally separate flat/ house. In either case, the qualifying… (read more)

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)