Stay informed about the latest case laws on Income Tax with this comprehensive overview as we delve into the latest cases reported in the Income Tax Reports (ITR), focusing on critical issues such as charitable purpose, exemptions, revision, deductions, search and seizure, appeal, reassessment, business expenditure and penalty proceedings.
(2025) 482 ITR
Income Tax — Charitable purpose — Exemption — Condition precedent — Furnishing of audit report mandatory — Mode and manner of filing of such report is procedural — Audit report not filed with return of income but filed later — Held, exemption could not be denied on ground that audit report not filed with return [Indian Panelboard Manufacturer Assn. v. CIT, (2025) 482 ITR 54]
Income Tax — Revision — Condition precedent — Assessment order should be erroneous and also prejudicial to revenue — Assessment without making proper enquiry — Held, order erroneous and prejudicial — Could be set aside in revision proceedings [CIT v. Paramount Propbuild (P) Ltd., (2025) 482 ITR 61]
Income Tax — Deductions — Interest on borrowed capital — Held, finding amount borrowed for the purposes of business — Interest deductible [CIT v. Ashini Lease Finance (P) Ltd., (2025) 482 ITR 81]
Income Tax — Exemption — Deduction in respect of donations to certain funds and charitable institutions — Anonymous donations received in hundi — Concurrent findings of fact by appellate authorities that assessee was involved in religious activities not disproved by department — Appellate authorities rightly held assessee as religious trust entitled to benefit [CIT v. Shree Sai Baba Sansthan Trust, (2025) 482 ITR 95]
Income Tax — Search and seizure — Recovery of tax — Provisional attachment order — Factors to be considered — Continuation of business activities by assessee and welfare of workers — Held, assessment not finalised — Directions issued to assessee to file application for modification [Saravana Selvarathnam Retail (P) Ltd. v. CIT, (2025) 482 ITR 121]
Income Tax — Appeal to High Court — Powers to High Court — Search and seizure — Block assessment — Computation of undisclosed income of block period — Opportunity to cross-examine deponents of statements given to assessee — Held, findings of fact if not perverse cannot be interfered with in appeal [Mange Ram Mittal v. CIT, (2025) 482 ITR 130]
Income Tax — Reassessment — Notice after four years — Change of opinion — Assessee disclosing all material facts in respect of transactions in question in scrutiny assessment — Succeeding assessing officer issuing notice for reopening mechanically stating original assessment is under Section 143(1) of the Income Tax Act, 1961 — Non- application of mind —Held, reopening on mere charge of opinion impermissible [Hemanshu Ramniklal Shah v. CIT, (2025) 482 ITR 138]
Income Tax — Non-residents — Business expenditure — Disallowance — Excessive and unreasonable payments — Expenditure in favour of related parties — Finding that assessing officer not establishing how expenses were excessive or unreasonable having regard to fair market value — Held, order of Tribunal holding expenses not excessive not erroneous [CIT v. Technip Energies Italy S.P.A, (2025) 482 ITR 149]
Income Tax — Exemption — Long-term capital gains — Purchase and sale of shares — Reopening of assessment on information from investigation directorate that assessee beneficiary of accommodation entries provided by penny stock companies — Held, no error in finding facts by tribunal [CIT v. Damodar Jajoo, (2025) 482 ITR 154]
Income Tax — Penalty Proceedings — Concealment of income — Notice for imposition of penalty — Provisions of Section 274 of the Income Tax Act, 1961 — Satisfaction of Assessing Officer — Surrender of undisclosed income pursuant to search and seizure of documents and not voluntary — Penalty proceedings initiated on basis of particulars of concealment of income stated in assessment order — Held, principles of natural justice compiled with — Notice issued valid [CIT v. Thakur Prasad Sao & Sons (P) Ltd., (2025) 482 ITR 168]
