Interest earned from Co-operative Bank deposits eligible for Section 80P(2)(d) deduction Issue Whether a co-operative society is eligible to claim a deduction under Section 80P(2)(d) on interest income earned from fixed deposits (FDs) kept with a co-operative bank. Facts Assessee Profile: A co-operative society. Assessment Years: 2017-18, 2018-19, 2020-21, and 2022-23. The Income: The assessee… Read More »
Jurisdictional AO validly holds power to issue Section 148 notice; Faceless Scheme applies only to assessment proceedings Issue Whether notices under Section 148 issued by the Jurisdictional Assessing Officer (JAO) after 01.04.2022 are valid, or if they are mandatorily required to be issued by the National Faceless Assessment Centre (NFAC) in light of Section 151A… Read More »
Delayed payment of Self-Assessment Tax is not “Willful Evasion”; Prosecution u/s 276C quashed Issue Whether the failure to pay self-assessment tax along with the return of income, which is subsequently paid (albeit with delay), constitutes a “willful attempt to evade payment of tax” punishable under Section 276C(2), particularly when the delay is attributed to financial… Read More »
Merchant Navy officer’s 560-day delay in appeal not condoned; Presence on land during limitation period fatal to excuse Issue Whether a delay of 560 days in filing an appeal against a penalty order under Section 270A can be condoned on the ground that the assessee is a Merchant Navy officer and was “at sea,” when… Read More »
PCIT’s Revision u/s 263 upheld; AO failed to investigate ‘Penny Stock’ report despite specific intel Issue Whether the Principal Commissioner of Income Tax (PCIT) validly invoked Section 263 to set aside an assessment order where the Assessing Officer (AO) accepted Long Term Capital Gains (LTCG) from a specific scrip (‘Oasis’) without inquiring into the “abnormal… Read More »
Giants with Brand Value, R&D, and Products not comparable to Captive Software Units Issue Whether a “captive, low-risk software development service provider” can be benchmarked against giant global IT companies that possess: Significantly higher turnover and diversified activities (Turnover Filter). Proprietary products, embedded engineering, and IP ownership (Functional Dissimilarity). R&D centers and patents. No segmental… Read More »
High-end Analytics companies not comparable to Marketing Support; LIBOR applied to Receivables Issue Comparability: Whether companies engaged in “Managerial Analytics” or possessing significant intangible assets can be selected as comparables for an assessee providing simple “Marketing Support Services.” Receivables: Whether outstanding trade receivables from Associated Enterprises (AEs) constitute an international transaction, and if so, what… Read More »
LIBOR applied to foreign currency loans; SBI PLR rejected for US Dollar loans Issue Whether the interest on loans advanced to Associated Enterprises (AEs), which were repayable in US Dollars, should be benchmarked using the domestic SBI Prime Lending Rate (PLR) or the international LIBOR rate. Facts The Transaction: The assessee-company advanced loans to its… Read More »
Cancellation of 12AB registration quashed for lack of specific Show Cause Notice; Matter remanded Issue Whether the Commissioner of Income Tax (Exemption) [CIT(E)] can validly cancel a charitable trust’s registration under Section 12AB(4) without issuing a specific Show Cause Notice (SCN) detailing the allegations, and without considering the detailed written submissions filed by the assessee.… Read More »
Alumni Association qualifies for 12A Registration; Objects held to serve Public, not just Members I. Issue Public vs. Member Benefit (12A/12AB): Whether an Alumni Association Trust constitutes a valid charitable trust eligible for registration under Section 12A/12AB, or if it is merely a “mutual benefit” organization serving only its members, thereby disqualifying it from exemption.… Read More »