Wrong Route, Wrong Assessment: Delhi ITAT Quashes Assessment Based on Third-Party Search Material     If the Department Wants to Use Search Documents Found from Someone Else, It Must Follow the Reassessment Procedure Tax law is not only about what the Income Tax Department can do-it is equally about how it must do it. In a significant…

Presumptive Taxation Under Section 44AD Saves Taxpayer from Bogus Billing Allegation: ITAT Deletes Additions Under Sections 68 and 69C     Suspicion Cannot Replace Evidence, Says Surat ITAT In an important ruling for small traders and taxpayers opting for presumptive taxation, the Surat Bench of the Income Tax Appellate Tribunal (ITAT) has held that additions…

No Quantum, No Penalty: ITAT Holds Section 271(1)(c) Penalty Cannot Survive When Assessment Is Sent Back for Fresh Adjudication     Penalty Proceedings Cannot Stand on a Foundation That No Longer Exists One of the most fundamental principles of tax law is that penalty proceedings are generally consequential to the assessment proceedings from which they…

Income Tax Department to Challenge Bombay High Court’s Trust Registration Ruling: What It Means for Charitable Trusts   The long-running debate between charitable trusts and the Income Tax Department has entered a new phase. After the Bombay High Court granted significant relief to several public charitable trusts by holding that the absence of an express…

Sometimes the Best Tax Victory Is Not on Merits but on Jurisdiction     Why Every Taxpayer Should Examine Technical Grounds Before Fighting on Facts When taxpayers receive an assessment order, their immediate reaction is usually to defend the additions on merits. They gather documents, prepare explanations, and focus entirely on proving that the Assessing…