Section 69 Addition Cannot Be Based on Mere Suspicion or ‘Human Probabilities’ Once the Source of Cash Is Proved: ITAT Chennai One of the most common reasons for additions under Section 69 of the Income-tax Act is cash deposited in a bank account. In many assessments, taxpayers produce documentary evidence explaining the source of the cash, yet…

Is a Section 143(2) Notice Invalid If It Does Not Mention ‘Limited Scrutiny’ or ‘Complete Scrutiny’? ITAT Special Bench Says No One of the most frequently raised legal challenges in income-tax assessments concerns the validity of a notice issued under Section 143(2). In recent years, taxpayers have argued that notices issued after the CBDT Instruction dated 23…

Can the CIT(A) Enhance an Assessment by Introducing a Completely New Source of Income? ITAT Delhi Says No   The power of the Commissioner of Income Tax (Appeals) [CIT(A)] to enhance an assessment is one of the most potent appellate powers under the Income-tax Act. However, an equally important question arises: Can the CIT(A) travel beyond the assessment…

Is GST Refund Taxable If It Is Reported in Form 3CD but Not Credited to the Profit & Loss Account? ITAT Bangalore Says No   Important Ruling on GST Refunds, Form 3CD Clause 16(B), Exclusive Method of Accounting, and Section 143(1) Adjustments The Central Processing Centre (CPC) has increasingly been making automated adjustments under Section 143(1) by…

Section 54F Exemption Cannot Be Denied for Delay Beyond Taxpayer’s Control: Telangana High Court Grants Relief Despite 7-Year Delay in Construction   Landmark Ruling on Joint Development Agreements (JDA), Delayed Possession, and Liberal Interpretation of Section 54F One of the most common disputes under the Income-tax Act concerns the availability of Section 54F exemption where the purchase, construction, registration,…