Daily Archives: December 29, 2025

Variable License Fee Paid by DTH Service Providers is Allowable as Revenue Expenditure (Section 37); Section 35ABB Inapplicable ISSUE Whether the Annual Variable License Fee (10% of Adjusted Gross Revenue) paid by a Direct-to-Home (DTH) service provider constitutes Capital Expenditure for acquiring a “telecommunication license” (amortizable under Section 35ABB), or Revenue Expenditure (allowable under Section… Read More »

Admissibility of Section 131 Statements vs. Sufficiency of Evidence for Section 68 Additions ISSUE 1 (Admissibility) Whether a statement recorded by tax authorities under Section 131 has evidentiary value and is admissible, given that tax officers are not a “Court” in the strict sense. ISSUE 2 (Sufficiency) Whether an addition under Section 68 (Cash Credit)… Read More »

Transfer Pricing Adjustment Deleted: Cost-to-Cost Reimbursement for Event Expenses is Not a ‘Service’ Warranting Mark-up ISSUE Whether the reimbursement of event-related expenses (hotel, travel, etc.) incurred by the assessee on behalf of its Associated Enterprise (AE) and recovered on a cost-to-cost basis constitutes a “service” requiring a profit mark-up under Transfer Pricing regulations. FACTS The… Read More »

Section 54F Exemption Denied: Assessee Owning Multiple Independent Floors Treated as Owning More Than One Residential House ISSUE Whether an assessee is eligible for exemption under Section 54F upon the sale of one floor of a building, if he retains other independent floors in the same building (having separate kitchens and yielding rental income), thereby… Read More »

Additions on HSBC Geneva Accounts Deleted: BUP IDs Held to be Internal Identifiers, Not Separate Accounts; Peak Balance Already Taxed in Father’s Hands ISSUE Whether additions under Section 69A can be made in the hands of legal heirs regarding foreign bank deposits (HSBC Geneva) based solely on “BUP IDs” found in data received under DTAA,… Read More »

No Penalty for Cash Received on Property Sale if Agreement to Sell was Executed Before Section 269SS Amendment (01-06-2015) ISSUE Whether penalty under Section 271D can be levied for accepting cash consideration (“specified sum”) for the sale of immovable property after 01-06-2015, when the Agreement to Sell was executed prior to the amendment that brought… Read More »