Column

Penalty proceedings u/s 274 r/w section 271(1)(c) – Estimation of income – Bogus Purchases

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  ITAT MUMBAI:-Amish Anantrai Modi Versus Deputy Commissioner of Income tax, Central Circle 2 (1), Mumbai, No.- I. T. A No. 6281/Mum/2025 Dated:- December 9, 2025 The instant appeal of the assessee was filed against the order of the Learned Commissioner of Income-tax (Appeal)-48, Mumbai [hereinafter, ‘Ld. CIT(A)] passed under section 250 of the Income-tax … Read more

PCIT Sanction Sufficient for Prosecution in High-Value Tax Evasion Cases: Delhi High Court Clarifies Scope of CBDT Circulars

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Saumya Chaurasia v. Union of India & Others Delhi High Court | WP(C) 8191/2025 | Dec 8, 2025** 1. Core Issue:- Whether, for prosecution under Section 276C(1) (wilful attempt to evade tax) and Section 278E (presumption of culpable mental state), where the amount of tax sought to be evaded exceeds ₹25 lakh, the sanction of … Read more

Addition u/s 68 for Demonetisation Cash Deposits – Whether Possible When Books Are Rejected and Cash Sales Duly Recorded?

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ITAT Mumbai – Rakesh Jain v. DCIT (2025) ITA No. 546/Mum/2025 │ Order dated: 4 December 2025 1. Core Issue The central questions before the Tribunal were: 1.Whether cash deposits made during the demonetisation period can be taxed as unexplained cash credits under Section 68 when they are already recorded as cash sales in the … Read more

Addition under Section 68 – Evidentiary Value of Statements under Section 131 – Scope of Provisos to Section 68 – Valuation under Section 56(2)(viib)

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Madras High Court – PCIT, Central–1, Chennai v. Lalitha Jewellery Mart Pvt. Ltd. TCA Nos. 14–16 of 2020 | Judgment dated 28 November 2025 1. Background:-These appeals arose from assessments framed under section 153A pursuant to a search conducted on 2 September 2014 in the Lalithaa Jewellery group. For AYs 2013-14, 2014-15 and 2015-16, the … Read more

Addition u/s 56(2)(viib): Validity of DCF Method and Differential Premium – Tribunal Reiterates Binding Effect of Jurisdictional High Court Rulings

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ITAT Delhi: Intermesh Shopping Network Pvt. Ltd. vs. ITO, Ward-12(3), Delhi ITA No.1587/Mum/2024 Order dated 1 December, 2025 ( AY 2016-17) The Delhi Bench of the Tribunal Evaluated whether a large addition under section 56(2)(viib) could be maintained where the assessee had issued shares at different premiums to different investors and had relied upon a … Read more

Deduction u/s 80IAC – Whether Delay in Filing Form 10CCB is Fatal?

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Scope of Amendment to Section 80IA(7) – ITAT Delhi :FIVD India Consulting Pvt. Ltd. v. DCIT, Circle 1(1), Gurgaon ITA No. 3877/Del/2025 | Order dated 28 November 2025 | AY 2023-24 I. Core Issue:-The central question before the Tribunal was whether a start-up claiming deduction under section 80IAC could be denied the benefit solely because … Read more

Rectification Under Section 254(2): Limits of ITAT’s Power Reaffirmed

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M/s Devaraj & Others v. ITO, Coimbatore – Madras High Court (27 November 2025) The Madras High Court has once again clarified the narrow contours of the rectification jurisdiction vested in the Income Tax Appellate Tribunal under Section 254(2). The decision in M/s Devaraj & Others v. ITO, Company Ward–I, Coimbatore is significant not merely … Read more

DTAA Rate vs. Section 206AA: Withholding in the Absence of PAN – A Revisited and Settled Controversy

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  The interaction between treaty rates and Section 206AA has long generated uncertainty in cross-border withholding. One of the most common queries was whether non-furnishing of a PAN would necessarily result in compulsory 20 per cent deduction, despite being at variance with the net DTAA rate. This aspect has been clarified by the Delhi High Court … Read more