Daily Archives: November 22, 2025

No Separate Adjustment for AMP Expenses as Aggregate Benchmarking Under TNMM Was Accepted. Issue Whether Advertising, Marketing and Promotion (AMP) expenses incurred by the assessee (LG India) should be treated as a separate international transaction requiring independent benchmarking, or if they are subsumed under the entity-level Transactional Net Margin Method (TNMM) analysis, especially when such… Read More »

Employees’ PF/ESI Contribution Deposited After Statutory Due Date is Disallowed u/s 36(1)(va). Issue Whether the deduction for employees’ contribution towards Provident Fund (PF) and Employee State Insurance (ESI) is allowable under Section 36(1)(va) if the amount is deposited after the due date prescribed under the respective Acts (PF/ESI Act), even if paid before the filing… Read More »

Ex-Parte Disallowance of Scientific Research Donation Remanded; Retrospective Rescission of Approval to be Re-examined. Issue Validity of Deduction: Can a weighted deduction under Section 35(1)(ii) for a donation to a research association be disallowed solely because the association’s approval was rescinded with retrospective effect (from 2004) after the donation was made? Natural Justice: Should an… Read More »

Registration of Educational Trust Restored; Cancellation on Technical Grounds and Internal Disputes Quashed. Issue Whether the Commissioner (Exemptions) was justified in cancelling the registration of an educational trust under Section 12AA(4) based on grounds such as amendments to the trust deed without prior permission, repayment of loans to trustees, belated filing of returns, payment of… Read More »

Delay in Filing Form 9A Condoned Due to “Genuine Hardship” and First Year of New Procedure Issue Whether the delay in filing Form 9A (for deemed application of income) for Assessment Year 2016-17 should be condoned under Section 119(2)(b) when the assessee inadvertently filed Form 10 instead, due to confusion arising from the fact that… Read More »

Director’s Remuneration Classified as Salary in Absence of Proof of Specific Professional Services. Issue Whether a receipt of Rs. 66 lakhs by a Director from his company should be taxed as “Professional Income” (Business/Profession) or as “Salary,” especially when the assessee fails to produce documentary evidence substantiating the nature of specific professional or technical services… Read More »

10% Ad Hoc Disallowance of Commission Deleted as Assessee Furnished PAN, TDS, and Bank Details. Issue Whether the Assessing Officer (AO) can make a 10% ad hoc disallowance on commission expenses claimed by a real estate firm solely on the ground that specific sales deeds were not mapped to the commission, even when the assessee… Read More »

Incorrect Calculation of Section 54F Deduction is Not “Misreporting” of Income; Penalty u/s 270A Deleted Issue Whether a penalty for “misreporting of income” under Section 270A(9) of the Income-tax Act can be levied when an assessee discloses all material facts regarding a capital gains transaction but makes a bona fide error in calculating the quantum… Read More »

Addition for Bogus Purchases Deleted: Statement of Third Party Without Cross-Examination is Insufficient Evidence Issue Whether an addition for alleged bogus purchases can be sustained solely on the basis of a statement made by a third-party supplier (admitting to providing accommodation entries), when the Assessing Officer (AO) denied the assessee the opportunity to cross-examine the… Read More »