Income Tax Demand Recovery: Can the AO Attach Your Bank Account While Your Appeal Is Pending?     Yes – potentially. Filing an appeal does not, by itself, put the tax demand into suspended animation. This is one of the most misunderstood aspects of income-tax litigation. An assessee may have filed an appeal against an…

Updated ITR: Can CPC Charge Section 234B Interest Beyond the Date of Tax Payment?   Ahmedabad ITAT Says Interest Under Section 234B Cannot Be Extended Merely Up to the Date of Section 143(1) Intimation The Updated Income-tax Return facility under Section 139(8A) was introduced to give taxpayers an opportunity to voluntarily correct omissions and pay the additional…

Section 69C Cannot Apply When Source of Payment Is Known   ITAT Hyderabad Says Failure to Explain Purpose or Destination of Payment Is Not the Same as Failure to Explain Its Source Section 69C is often invoked by the Income-tax Department whenever an Assessing Officer finds expenditure which, in his view, has not been satisfactorily…

₹11.22 Crore Addition and 500 Trees: An Unusual Second Chance by ITAT Chandigarh   Tribunal Gives One Final Opportunity-But Links Relief to Plantation of 500 Trees What would you do if a tax dispute involving more than ₹11 crore came with an unexpected condition? Explain the unexplained money-and plant 500 trees. That is broadly what makes…

Interest on Land Acquisition Compensation: Can It Be Taxed Separately?   ITAT Says Interest Under Section 28 of the Land Acquisition Act Forms Part of Compensation Where the Underlying Land Is Not a Capital Asset Land acquisition compensation can sometimes come in two parts. First, there is the compensation for the land. Then there may be…