Section 69A Cannot Be Invoked on Explained Cash Re-Deposits: ITAT Clarifies Law   In an important ruling reinforcing the correct scope of deeming provisions, the Tribunal in Pradeep Patni vs ITO (ITA No. 687/Ind/2025) has held that Section 69A applies only when unexplained money is found with the assessee and not when deposits are duly explained. The decision…

No Tax on Old Deal done prior to enactment of law: ITAT Rules Section 56(2)(x) Cannot Apply Retrospectively   In a significant ruling protecting taxpayers from retrospective taxation, the Tribunal in Rinki Singh (ITA No. 56/Ran/2025) has held that Section 56(2)(x) cannot be invoked where the original property purchase agreement predates the provision, even if the sale deed…

Virtual Presence Is Not Physical Presence: Bombay High Court Draws a Clear Boundary   In a landmark ruling with far-reaching implications for cross-border taxation, the Bombay High Court in Benteler Automotive China v. ACIT has addressed a fundamental question of the digital age—does virtual presence amount to physical presence in India for tax purposes? The answer, delivered…

Foreign assets disclosure scheme 2026   The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, announced in the Union Budget 2026, offers a 6-month window for taxpayers to voluntarily disclose previously unreported foreign assets and income. It provides immunity from penalties and prosecution under the Black Money Act, 2015, specifically targeting small taxpayers with…

No Cross-Examination, No Case: ITAT Mumbai Strikes Down Additions Based on Third-Party Statements   In a strong reaffirmation of the principles of natural justice, the Mumbai Tribunal has ruled in favour of the taxpayer by holding that additions based solely on unverified third-party statements cannot be sustained in law. The ruling exposes a recurring issue in…