H K Davra & Co. Income Tax Reassessment Time Limits: Section 148 and Sections 279-282 of the New Act A return is filed, taxes are paid and the year appears closed. Several years later, a notice arrives proposing to reopen that year because income is believed to have escaped assessment. For many taxpa... Income Tax Reassessment Tax Notice 01-Apr-2026
H K Davra & Co. Deemed Dividend under Section 2(22)(e): When a Loan from a Company Becomes Taxable Income In a closely held company, funds often move between the company and its promoters as a matter of convenience: an advance to a director to buy a house, a loan to a sister firm, or a payment of a shareh... Closely Held Companies Deemed Dividend Income Tax 24-Feb-2026
H K Davra & Co. TDS Default Disallowance for Non-Resident Payments: Section 40(a)(i), Now Section 35(b)(ii) Many taxpayers are surprised when a business expense that is fully supported by an invoice, a contract and a bank payment is disallowed in assessment. The expense is not in doubt. The service was rece... Income Tax Non-Resident Payments TDS 17-Feb-2026
H K Davra & Co. Is a Bank Payment Proof of a Genuine Transaction? Income Tax Myth vs Reality A common belief among taxpayers is that once a payment is made by cheque or bank transfer, the transaction is beyond question. The bank statement shows the amount, the date and the counter-party, so w... Bogus Purchases Income Tax Tax Assessment 10-Feb-2026
H K Davra & Co. Capital Introduction and Source of Funds: Proving "My Own Money" under Section 68 (Section 102) "This is my own money" is one of the most common explanations given in income-tax assessments. It is offered when a proprietor introduces capital, when a partner contributes funds to a firm, when cash... Income Tax Source of Funds Tax Assessment 03-Feb-2026
H K Davra & Co. GST Refund Rejected for Procedural Lapses: Substance Over Form, Section 54 and Case Law Refunds are where the design of GST meets its administration. An exporter or a manufacturer with an inverted duty structure may be clearly entitled to a refund, yet the claim is rejected for a wrong c... GST GST Litigation GST Refund 27-Jan-2026
H K Davra & Co. ITC Denial for Supplier Default under GST: Section 16(2)(c), Suncraft Energy and Case Law A buyer pays the full invoice value, including GST, to a registered supplier, receives the goods and records the purchase. Months later, the GST officer issues a notice proposing to deny the Input Tax... GST GST Litigation Input Tax Credit 20-Jan-2026
H K Davra & Co. Section 40(a)(ia): 30% TDS Disallowance, Later-Year Relief and Section 35(b)(i) of the New Act Many businesses treat TDS as a back-office formality: deduct, deposit, file the quarterly return and move on. Yet a single missed deduction on professional fees, a contract payment or a year-end provi... Income Tax Section 40(a)(ia) TDS Tax Audit 13-Jan-2026
Section 68 of the Income Tax Act: Unexplained Cash Credits, the 3-Test Rule and Section 102 of the New Act Every year, thousands of taxpayers receive additions in their assessment orders for one simple reason: they could not prove where the money in their books came from. Section 68 of the Income-tax Act, ... Direct Tax Income Tax Section 102 Section 68 Unexplained Credits 06-Jan-2026