Topic
ITAT Pune rules that failure to issue notice u/s 143(2) of the Income Tax Act after assessee files return in response to notice u/s 148 renders re-assessment order invalid, even if return is delayed.
ITAT Delhi quashes reassessment proceedings where the escaped income was below ₹50 lakh and not represented by assets, holding that Section 149(1)(b) preconditions were not met. The ruling reinforces strict compliance requirements for reopening assessments beyond three years, impacting taxpayers facing similar notices.
Madras High Court rules that funds misappropriated by a related party (husband of a partner) cannot be deducted as business expenditure under Section 40A(2) of the Income Tax Act. The judgment underscores that such claims require strict documentary evidence and cannot be justified merely by internal allegations of misappropriation, reinforcing tax compliance rigor for related-party transactions.