Section 40(a)(ia) Disallowance Quashed; Payments to Government and Unpaid Amounts Exempt from TDS Issue: Whether disallowance under Section 40(a)(ia) of the Income-tax Act, 1961, is justified when the payments were made to the Government of Maharashtra, or were not actually paid or credited during the relevant assessment year. Facts: Assessment Year: 2017-18. The assessee, a… Read More »
Aborted IPO Expenditure Allowed as Revenue Expenditure Under Section 37(1) Issue: Whether expenditure incurred by an assessee-company on an abandoned Initial Public Offering (IPO) can be allowed as revenue expenditure under Section 37(1) of the Income-tax Act, 1961. Facts: Assessment Year: 2019-20. The assessee-company, engaged in manufacturing botanical drugs, incurred expenditure on an IPO that… Read More »
ESOP Discount Allowed as Business Expenditure Under Section 37(1) Issue: Whether the issuance of shares at a discount under an Employee Stock Option Plan (ESOP) constitutes an allowable business expenditure under Section 37(1) of the Income-tax Act, 1961. Facts: Assessment Years: 2012-13 and 2013-14. The assessee issued shares to employees at a discount under an… Read More »
Disallowance Under Section 36(1)(va) Upheld for Delayed PF/ESI Contributions; Auditor’s Observation Sufficient for Disallowance Issue I: Whether delayed payment of employees’ contributions towards Provident Fund (PF) and Employee’s State Insurance Corporation (ESI) beyond the due date stipulated in the respective Acts justifies disallowance under Section 36(1)(va) of the Income-tax Act, 1961. Facts I: The assessee-employer… Read More »
Reopening Notice for Depreciation on Goodwill Quashed; No Escapement of Income Issue 1: Whether a reopening notice under Section 148 of the Income-tax Act, 1961, is valid when it is based on the same issue that was decided in a previous assessment year, and the Assessing Officer (AO) failed to consider the effect of the… Read More »
Short-Term Capital Loss Disallowance Upheld; Sham Transaction for Tax Avoidance Issue: Whether a short-term capital loss claimed by the assessee on the sale of shares can be disallowed when the Assessing Officer (AO) concludes that the purchase and sale of shares was a sham transaction designed for tax avoidance. Facts: The assessee made a short-term… Read More »
Product registration expenses are capital expenditure. I. Demerger (Section 2(19AA), 45, 47) Issue: Whether the transfer of the assessee’s treasury unit to ‘S’ constituted a valid demerger under Section 2(19AA) or a taxable capital gain. Facts: The assessee transferred its treasury unit to ‘S’ in exchange for shares of ‘S’ to its shareholders. The AO… Read More »
Section 11/12 Exemption Remanded; Charitable Purpose of First Aid Training to be Assessed Issue: Whether an assessee society involved in imparting first aid training and earning fees for training, certification, and protection awards is entitled to claim exemption under Sections 11 and 12 of the Income-tax Act, 1961, and whether the Assessing Officer (AO) failed… Read More »
Saving Bank Cash Deposit Limit from 1st April 2025 Financial Year: The financial year runs from April 1 to March 31.. Following limits are required to be kept in mind for Cash Deposit in Saving Bank Account Cash Deposits in Saving Bank Account: Daily Limit: If you deposit more than ₹50,000 in a day, you… Read More »