Mismatch Between Service Tax and Income Tax Records Due to Accounting Methods Cannot Justify Addition Issue Whether an Assessing Officer can make an addition for alleged suppressed turnover based solely on a mismatch between service tax returns and income tax returns, when the assessee consistently follows the Percentage of Completion Method (POCM) under Section 145.… Read More »
Corporate Guarantee Commission Rate Restricted to 0.60 Percent Following Consistency Rule, and TDS Reconciliation Remanded for Re-Verification Issue Whether the Transfer Pricing Officer (TPO) was justified in departing from the established 0.60% arm’s length corporate guarantee rate by relying on external bank guarantee rates, and whether short credit of TDS/TCS granted by the Assessing Officer… Read More »
Unsupported Presumptions and Lack of Evidence Cannot Disallow Section 80-IE Deduction or Reallocate Ordinary Profits Issue Whether an assessee-firm is entitled to Section 80-IE deduction when concurrent findings confirm old machinery did not exceed 20%, and whether the AO can arbitrarily reduce eligible profits by allocating royalty, management fees, and R&D expenses under Section 80-IA(10)… Read More »
Reassessment Notice Based on Mere Change of Opinion Already Examined in Scrutiny Is Invalid Reassessment Notice Based on Mere Change of Opinion Already Examined in Scrutiny Is Invalid Issue Whether an assessment reopened under Section 148 of the Income-tax Act, 1961 is legally permissible when the specific transaction relied upon for reopening was already thoroughly… Read More »
Disclosed Opening Balances and Wealth-Tax Records Fully Explain Cash and Jewellery Found During Search Disclosed Opening Balances and Wealth-Tax Records Fully Explain Cash and Jewellery Found During Search Issue Whether cash and jewellery seized during a search under Section 132 can be treated as unexplained under Section 69A when supported by accepted opening cash balances,… Read More »
Payment Made on First Working Day Post Bank Holiday Entitles Trust/Company to Employee PF/ESI Deduction Payment Made on First Working Day Post Bank Holiday Entitles Trust/Company to Employee PF/ESI Deduction Issue Whether an Assessing Officer can disallow employee PF/ESI contributions under Section 36(1)(va) when the payment delay was solely due to bank holidays (Saturday and… Read More »
Absence of Live Nexus and Compliance with Pre-2021 PF Rules Invalidates Section 148 Reassessment Notice Issue Whether a reassessment notice under Section 148 is valid when the third-party statement lacks a live nexus with the assessee’s share capital transaction, and when late employee PF/ESIC deposits (paid before the Section 139 return due date) did not… Read More »
Section 147A Unconstitutional: Section 148 Reassessment Notices Must Be Faceless and Automated Issue Whether the retrospective insertion of Section 147A (clarifying that Section 148 notices can be issued by non-faceless Assessing Officers) is unconstitutional for directly attempting to override judicial precedent without removing the core statutory defects under Section 151A and the 2022 Faceless Scheme.… Read More »
Filing Return in Form ITR-7 Without Examination of Excluded Income Cannot Justify Rejection of Trust Registration Filing Return in Form ITR-7 Without Examination of Excluded Income Cannot Justify Rejection of Trust Registration Issue Whether the mere filing of returns in Form ITR-7 by an assessee-trust conclusively proves that it availed exemption under Sections 11 and… Read More »
Form 9A filed before Section 139(1) due date entitles trust to deemed application under Section 11. Issue Whether Form 9A filed on 01.10.2019 (prior to the extended Section 139(1) due date of 31.10.2019 for A.Y. 2019-20) entitles the assessee to deemed application under Explanation 1 to Section 11(1), and whether statutory accumulation up to 15%… Read More »