Direct Tax Weekly Flashback: 15 February 2026 To 21 February 2026

Here’s an Direct Tax weekly flashback from 15 February 2026 To 21 February 2026.

Supreme Court

Can 30-Month Delay in Filing ITR Can Be Condoned Under Income Tax Act? Supreme Court to Decide

The Supreme Court to examine whether the Income Tax Department has the authority to condone a delay of nearly 30 months in filing an Income Tax Return (ITR), and whether such delay can deprive a taxpayer of the right to carry forward business losses and claim Tax Deducted at Source (TDS) refunds.

Delhi High Court

TDS Credit Can’t Be Allowed to Go Waste Due to CA’s Lapse: Delhi High Court

The Delhi High Court has set aside an order of the Principal Commissioner of Income Tax (PCIT), Delhi-4, rejecting an assessee’s application for condonation of delay in filing a revised return for Assessment Year (AY) 2023–24. The Court held that denial of relief, despite substantial unclaimed TDS credit, was unsustainable in the facts of the case.

AO Can’t Deny S. 244A Refund Interest Without Commissioner’s Decision: Delhi High Court

The Delhi High Court has ruled that an Assessing Officer (AO) cannot independently deny interest on income tax refunds under Section 244A of the Income Tax Act, 1961, by attributing delay to the assessee.

Denial of Effective Hearing During Insolvency: Delhi HC Quashes Rs. 232 Crore Ex Parte Income Tax Assessment

The Delhi High Court has set aside an ex parte income tax assessment order of over ₹232 crore passed against Nayati Healthcare and Research NCR Private Limited, observing that the company was bona fide prevented from presenting its case due to insolvency proceedings.

Gujarat High Court

S. 153C Notice Invalid Where Satisfaction Note Relies on Public-Domain Information Instead of Seized Material: Gujarat High Court

The Gujarat High Court has held that notice under Section 153C of the Income Tax Act, 1961 is invalid where the satisfaction note relies on public-domain information instead of seized material and subsequent reliance on seized evidence cannot cure defects without mandatory satisfaction by both assessing officers.

Jammu & Kashmir and Ladakh High Court

Tax Revision Petitions Revive Automatically on Default Under DTVSV Act: J&K and Ladakh High Court

The High Court of Jammu & Kashmir and Ladakh has held that revision petitions withdrawn under the Direct Tax Vivad Se Vishwas (DTVSV) automatically revive by operation of law if the declarant fails to comply with payment conditions.

Allahabad High Court

Income Tax Prosecution U/s 276CC: Allahabad High Court Stays Non-Bailable Warrants Pending Compounding Decision

The Lucknow Bench of the Allahabad High Court has stayed the operation of non-bailable warrants issued against Shafaat Ejaz Siddiqui in a complaint filed under Section 276CC of the Income Tax Act, 1961. The interim protection was granted to enable the applicant to move an application for compounding of the offence before the competent authority.

Orissa High Court

Can the Income Tax Dept. Delay Infinitely Your Refund After Allowing An Appeal? Orissa High Court Answers

The Orissa High Court has directed the Income Tax Department to release the refund amount along with applicable statutory interest within two weeks.

The Bench of Chief Justice Harish Tandon and Justice M.S. Raman observed that refunds under Section 240 and interest under Section 244A are statutory rights, not discretionary reliefs.

ITAT

S. 54B Deduction Can’t Be Denied Without Properly Confronting Evidence on Agricultural Use: ITAT

The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has dismissed the department’s appeal and upheld the taxpayer’s claim for deduction under Section 54B of the Income-tax Act, holding that the Assessing Officer could not deny the benefit when documentary evidence supported agricultural use and inquiry material had not been properly confronted to the assessee.

Procedural Lapse Should Not Deny Concessional Tax Regime: ITAT Directs Condonation of Delay in Filing Form 10IC

The Delhi Bench of Income Tax Appellate Tribunal has directed the Principal Commissioner of Income Tax (PCIT) to condone the delay in filing Form 10IC by enabling the assessee to avail the concessional corporate tax regime under Section 115BAA of the Income Tax Act, 1961.

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has quashed reassessment proceedings for Assessment Year (AY) 2016–17 and deleted substantial additions made under Section 68 of the Income Tax Act for both AY 2016–17 and AY 2017–18 and held that the reassessment invalid if no addition made on recorded reasons.

Undated Loose Sheets ‘Dumb Documents’ in Search Assessment: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted additions exceeding Rs. 2.10 crore made against Shri Dheeraj Chaudhary for Assessment Year (AY) 2015–16, holding that rough, undated loose sheets seized during search proceedings could not form the basis of taxable additions.

S. 263 Is Not A Second Opinion — It’s For Real Errors: ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) held that revision under section 263 of the Income Tax Act cannot be sustained where the Assessing Officer has already made enquiries, examined the material on record, and taken a plausible view—because Section 263 is not a review or “second opinion” jurisdiction.

Assessment Quashed for Failure to Follow Mandatory S. 148B Procedure in Search-Based Additions: ITAT

The Chandigarh Bench of Income Tax Appellate Tribunal has quashed the assessment framed against M/s Malbros International Pvt. Ltd. for Assessment Year (AY) 2022–23, holding that the Assessing Officer (AO) erred in invoking Section 143(3) instead of following the mandatory reassessment procedure under Sections 147, 148, and 148B of the Income Tax Act, 1961.