Reclassification of loss via revised return under Section 139(5) cannot be disregarded if no fresh loss is claimed. Issue Whether a revised return filed under Section 139(5) reclassifying an already disclosed F&O loss from speculative to non-speculative business loss can be disregarded by the Assessing Officer when the total loss claimed remains substantially the same… Read More »
Unexplained cash deposit addition under Section 69A restricted to Rs. 13.10 lakhs based on cash flow verification. Issue Whether cash deposits aggregating to Rs. 25.71 lakhs in the HDFC Bank account of the assessee during the period 17-05-2016 to 06-08-2016 are treatable as unexplained money under Section 69A, or if the addition should be restricted… Read More »
Addition under Section 69A fails when DVO report accepts declared property prices, while Section 271B penalty stands without reasonable cause. Issue Whether additions under Section 69A based on a seized diary can be sustained when a Departmental Valuation Officer (DVO) report under Section 142A accepts declared property prices as matching fair market value. Whether penalty… Read More »
Reopening assessment beyond four years is invalid without establishing assessee’s failure to disclose material facts. Reopening assessment beyond four years is invalid without establishing assessee’s failure to disclose material facts. Issue Whether reopening an assessment under Section 147 after four years from the end of the relevant assessment year is valid when reasons recorded rely… Read More »
Capital gains from building redevelopment belong to members, making additions under society’s PAN unjustified. Issue Whether capital gains arising from a building redevelopment contract executed by a cooperative housing society can be taxed in the hands of the society merely because transactions were registered under its PAN, when rights and consideration belong exclusively to individual… Read More »
Temporary site-specific infrastructure expenditure for contract execution constitutes allowable revenue expenditure under Section 37(1). Issue Whether expenditure incurred on site-specific and temporary items like rollers, structures, scrap rails, conveyor belts, and ventilation ducting for executing a civil EPC contract is allowable as revenue expenditure under Section 37(1) or must be treated as capital expenditure providing… Read More »
Reopening assessment based on issues fully queried and accepted during original scrutiny constitutes an impermissible change of opinion. Reopening assessment based on issues fully queried and accepted during original scrutiny constitutes an impermissible change of opinion. Issue Whether initiating reassessment proceedings under Section 147 read with Section 148 on issues that were explicitly queried, examined,… Read More »
Transfer pricing adjustments apply strictly to AE transactions, requiring fresh verification of turnover and operating cost filters. Issue Whether transfer pricing adjustments under Chapter X must be restricted solely to international transactions with Associated Enterprises (AEs) rather than entity-level operations. Whether arbitrary application of a turnover filter (50% range) and exclusion/inclusion of non-recurring operating costs,… Read More »
Closing stock accepted in preceding year automatically constitutes opening stock for subsequent year. Issue Whether the Assessing Officer was justified in revaluating the opening stock as on 01.04.2013 and disallowing interest on an undisputed outstanding credit carried forward from the preceding year without rejecting the books of account under Section 145. Facts Stock Valuation Issue:… Read More »
Statutory limits on contributions do not apply to extraordinary payments bridging actuarial fund deficits. Issue Whether the statutory ceiling limits under Rule 87 (for superannuation funds) and Rule 103 (for gratuity funds) apply to extraordinary, ad-hoc contributions made by an employer solely to bridge actuarial deficits and ensure fund solvency. Facts Superannuation Contribution: For AY… Read More »