Section 44AD vs 44ADA: Can Wrong TDS u/s 194J Turn Business Income into Professional Income? A Growing Litigation Issue   A new and increasingly common controversy is emerging in income tax assessments—Assessing Officers are treating income as “professional income” merely because TDS was deducted under Section 194J, and forcing taxpayers into Section 44ADA instead of…

ITAT Can Recall Its Order If Binding Precedent Is Ignored | Section 254(2) Gets Strong Backing   In a significant ruling reinforcing judicial discipline, the Delhi ITAT has held that failure to follow binding judicial precedent is a “mistake apparent from record” and can be rectified under Section 254(2) of the Income-tax Act. This decision strengthens the…

Section 50C & Section 54 – MOU vs Registration Date | ITATba Mumbai  Facts: 1. The assessee, an individual, was allotted a residential flat in February 2004 and was placed in possession thereof. In March 2005, he entered into a Memorandum of Understanding (MOU) for sale of the said flat for a total consideration of…

New Income Tax Act 2025: Fewer Forms, Smarter TDS & Simpler Compliance (Part-3) For most taxpayers, TDS & TCS are not just provisions — they are silent partners in every transaction. Whether you earn salary, receive interest, pay rent or buy property, tax quietly gets deducted or collected along the way. Under the new Income…

Section 263 Revision Cannot Be Based on “Deeper Inquiry” | ITAT Draws Clear Line between No Inquiry and Inadequate Inquiry   In a significant ruling on the scope of revisionary powers under the Income-tax Act, the Tribunal has once again clarified that Section 263 cannot be invoked merely because the Principal Commissioner (PCIT) believes that a…