NICAI Update
CA Raj Chawla
1. If you are Saluting Someone thinking that he will also do you, then that Salutation is Useless. Because Namaskar is done Because of Sanskar, not Because of Ego.
2. The only Meaning of Doing Good Morning Everyday is that: Whenever there is a Meeting, Feel the Sense of Belongingness Every Day.
NICAI Update;
1. CBDT has said a major compliance change is mandatory disclosure of bank balances under the revised income tax return forms for taxpayers filing ITR-4 for Assessment Year (AY) 2026-27. The government has been gradually increasing the disclosure requirements in ITR forms to bring in more transparency and to have a more data-driven tax administration.
2. CBDT has issued Notification No. 45/2026/F. No. 370142/5/2026-TPL dated March 30, 2026 to provide additional reporting of bank balance in ITR-4 AY 2026–2027. Earlier, the bank account details such as account number, IFSC code and bank name were to be disclosed by taxpayers filing ITR-4, but the disclosure of actual bank balances was optional. However, the latest ITR-4 changes are likely to affect small business owners, professionals, freelancers, consultants, transport operators and salaried individuals earning side income under the presumptive taxation regime covered under Sections 44AD, 44ADA and 44AE of the Income-tax Act.
3. TAT Delhi in the case of Amit Katyal v. DCIT held that: An addition u/s 69A cannot be sustained merely on the basis of a post-search statement recorded u/s 131(1A), where the ledger of the assessee shows all payments made through banking channels and no independent enquiry has been conducted from the person alleged to have received cash. Presumption, without corroborative material or confirmation from the other side, is not sufficient to make an addition.
4. Where the incriminating material relied upon by the AO was found and seized from the premises of a third party and not from the premises of the assessee, the same cannot be used to make an addition in the assessee's hands in proceedings u/s 153A. The AO was required to follow the route prescribed u/s 153C of the Act.
5. Where part of an expenditure is paid by the assessee through cheque, it cannot be presumed that the cash component of the same expenditure was also paid by the assessee, particularly when there exists a plausible and unrebutted explanation (viz. Shagun receipts on the occasion of marriage) and no enquiry has been made from the actual recipient of payment.
6. WhatsApp chat messages cannot be used as evidence in proceedings relying on the Supreme Court's ruling in A2Z Infraservices v. Quippo Infrastructure Ltd. [2021 (7) TMI 1475 — SC].
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With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
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