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 Exemptions, Revision, Deductions, Limitation, Appeal, Reassessment, Legacy Dispute Resolution and Faceless assessment.
(2025) 482 ITR
Income Tax — Reassessment — Notice after four years — Change of opinion — Explanation on issue of unclaimed tax deducted at source credit explained by assessee in scrutiny assessment and assessment order passed — Held, reopening based on same material on mere change of opinion impermissible [Rushil Decor Ltd. v. CIT, (2025) 482 ITR 202 ]
Income Tax — Appeal — Appeal to Tribunal — Duty of Tribunal — Duty to grant assessee adequate opportunity to be heard — Held, violation of principles of natural justice — Order of Tribunal not sustainable [Ayub v. CIT, (2025) 482 ITR 206]
Income Tax — Appeal — Legacy dispute resolution — Maintainability — Order passed by assessing officer and time for appeal remaining — Held, application could be made [Sukhdev Singh Vedwal v. CIT, (2025) 482 ITR 208]
Income Tax — Assessment — Validity — Appeal to High Court — Competency of appeal — Finding of Tribunal that assessee had produced no proof of purchase of materials — Held, order of assessment taxing entire sum in assessee’s hands based on facts — Order valid [Santosh Kumar Jha v. CIT, (2025) 482 ITR 211]
Income Tax — Deductions — Income from other sources — Expenditure for purposes of earning income — Assessee borrowing money and lending it to others — Held, interest on borrowed money — Deductible [CIT v. Mahalaxmi Design (P) Ltd., (2025) 482 ITR 215]
Income Tax — Assessment — Limitation — Bar of limitation — Draft assessment order — Held, assessment order passed beyond statutory limitation period of one month from date of directions issued by Dispute Resolution Panel — Timelines mandatory [CIT v. Fiberhome India (P) Ltd., (2025) 482 ITR 221
Income Tax — Revision — Validity — Order on ground that assessment order had been passed without proper enquiry — Finding that order had been passed after due enquiry — Held, Order of revision based on suspicion — Not valid [ CIT v. Gopal Sharma, (2025) 482 ITR 226]
Income Tax — Appeal — Appeal to Appellate Tribunal — Powers of Tribunal — Tribunal admitting additional grounds of appeal and granting relief to assessee — Held, relief cannot be denied and revised return insisted upon [Mitsubishi Corpn. v. CIT, (2025) 482 ITR 230]
Income Tax — Assessment — Assessment order — Demand notice — Writ petition — Assessee’s detailed reply to notice not considered before finalising assessment — Assessment order quashed and matter remanded to Assessing Officer for fresh consideration after providing hearing if requested [Chatursinh Javanji Chavda v. CIT, (2025) 482 ITR 245]
Income Tax — Reassessment — Faceless assessment — Initial notice and order — Notice — Scheme for issue of notice — Faceless Assessing Officer has jurisdiction — Notice by jurisdictional assessing officer unsustainable [Future Market Networks Ltd. v. CIT, (2025) 482 ITR 249]
