Gift from HUF to member requires strict verification; Matter remanded to AO Issue Whether a sum of money received by an individual assessee as a “gift” from his Hindu Undivided Family (HUF) is taxable under Section 56(2)(vii) (now Section 56(2)(x)), considering the definition of “relative,” and whether the lack of complete documentation warrants a remand.… Read More »
Analysis of Transfer Pricing & Corporate Tax Rulings (AY 2013-14) I. Transfer Pricing Issues 1. Receivables as International Transactions (Section 92B) Issue: Do outstanding receivables constitute an “International Transaction”? Decision: Yes. Following the retrospective amendment to Section 92B by the Finance Act, 2012, receivables arising from capital financing or business transactions are explicitly defined as… Read More »
Online data valid for deemed rent estimation; interest deduction remanded for evidence verification Issue Deemed Rent Valuation: Whether the Assessing Officer (AO) is justified in estimating the Annual Letable Value (ALV) of deemed let-out properties based on data from online property portals in the absence of municipal valuation details provided by the assessee. Interest Evidence:… Read More »
SC dismisses Revenue’s SLP on delay; confirms no Section 14A disallowance without exempt income Issue Whether the Supreme Court should entertain a Special Leave Petition (SLP) filed by the Revenue with a significant delay, challenging the High Court’s ruling that no disallowance under Section 14A can be made if the assessee has not earned any… Read More »
Surplus generation for school development is not profit motive; Exemption u/s 10(23C)(vi) allowed Case I: Surplus Generation & Asset Creation Issue Whether the continuous generation of surplus by an educational society and the utilization of such surplus to create assets can be a valid ground to reject exemption under Section 10(23C)(vi) by labeling it as… Read More »
Medical seminars qualify as education for charitable exemption regardless of sponsorship receipts exceeding limits Issue Whether conducting medical seminars and workshops qualifies as “education” under Section 2(15) of the Income-tax Act, 1961, and if the receipt of sponsorship fees exceeding the statutory threshold disqualifies the trust from claiming exemption under Sections 11 and 12. Facts… Read More »
Title: Reassessment under Section 147 upheld; Writ petition dismissed as Section 153C inapplicable without incriminating material Issue Whether the assessment proceedings against the petitioner should have been initiated under Section 153C (assessment of income of any other person) of the Income Tax Act, 1961, instead of Section 147 (income escaping assessment), given that a search… Read More »
ITC on factory fire insurance allowed; blocked credit for motor vehicles inapplicable to general policies Issue Whether Input Tax Credit (ITC) validly claimed on insurance premiums for factory stock and premises can be denied by the Revenue authorities by erroneously classifying it as “Motor Vehicle Insurance” under the blocked credit provisions of Section 17(5).… Read More »
Excess stock found during survey attracts Section 73/74 demand, not Section 130 confiscation Issue Whether the revenue authorities can invoke the confiscation provisions under Section 130 of the CGST Act solely on the basis of excess or unaccounted stock found at the business premises during a survey, or if they are mandated to proceed under… Read More »
Voluntary payment covers pre-deposit; bank attachment lifted while limitation challenge awaits Supreme Court verdict Issue Pre-Deposit & Attachment: Whether a voluntary deposit made by the assessee can be treated as the mandatory pre-deposit for filing a statutory appeal, thereby warranting the lifting of a bank account attachment. Limitation Validity: Whether the Notifications extending the limitation… Read More »