Monthly Archives: February 2025

 Interest Income from Employee Loans Considered Business Income not income from other sources for Power Generation Company Issue: Whether interest income earned by a power generation company from loans and advances provided to its employees should be classified as ‘business income’ under Section 28(i) of the Income-tax Act, 1961, or ‘income from other sources’ under… Read More »

 Retainer Fee Paid to Foreign Agent in USA Allowed as Business Expenditure; No Disallowance for if No Exempt Income during the year Key Issues and Decisions: I. Allowability of Retainer Fee: Issue: Whether the retainership fee paid by the assessee-company to foreign agents for marketing and business development in the USA is allowable as business… Read More »

Delay in Filing Form 10B by Educational Institution Condoned Due to COVID-19 Hardships Issue: Whether the delay in filing Form 10B by an educational institution for registration under Section 12A of the Income-tax Act, 1961, can be condoned due to difficulties faced during the COVID-19 pandemic. Facts: The assessee, an educational institution, filed Form 10B… Read More »

SLP Dismissed for Delay in Case of Educational Trust’s , Development fees treated as capital expenditure Issue: Whether the Supreme Court should entertain a Special Leave Petition (SLP) filed with a significant delay of 504 days against a High Court order that upheld the Tribunal’s decision in favor of an educational trust regarding the treatment… Read More »

 Reopening Notice for Bogus LTCG Set Aside Due to Lack of Prima Facie Belief Issue: Whether a reopening notice issued under Section 148 of the Income-tax Act, 1961, for alleged bogus Long Term Capital Gains (LTCG) is valid when the Assessing Officer fails to establish a prima facie belief of income escaping assessment. Facts: The… Read More »

Section 197 Income Tax : Certificate for deduction at lower rate.  Certificate for deduction at lower rate.  197. 1(1) 2[Subject to rules made under sub-section (2A), 3[where, in the case of any income of any person 4[or sum payable to any person], income-tax is required to be deducted at the time of credit or, as… Read More »

Trade advances and payments to group companies not considered deemed dividends.  Clarification on Business Expenditure, Deemed Dividends, and Inter-Company Transactions Key Issues and Decisions: I. Deductibility of Hazardous Waste Disposal Expenses: Issue: Whether the assessee, a bulk drug manufacturer, can claim a deduction for expenses incurred in the disposal of hazardous waste (spent solvents/scrap) beyond… Read More »