Bar on Updated Returns Post-Scrutiny Notice Issuance Reference: Section 139(8A) read with Section 143 of the Income-tax Act, 1961 Assessment Year: 2024-25 Status: In Favor of Revenue (Writ Petition Dismissed) 1. The Core Dispute: Filing Updated Returns during Scrutiny In this matter for Assessment Year 2024-25, the assessee’s case was selected for scrutiny under the… Read More »
Condonation of Delay in Filing Form No. 10-IC for Section 115BAA Tax Benefits Reference: Section 115BAA and Section 119 of the Income-tax Act, 1961; Rule 21AE of the Income-tax Rules, 1962 Assessment Year: 2020-21 Status: In Favor of Assessee (Delay Condoned) 1. The Core Dispute: Procedural Lapses in Opting for Lower Tax Rates For Assessment… Read More »
Transfer Pricing on Guarantees, Comfort Letters, and Amortization of Demerger Stamp Duty Distinction Between “Letters of Comfort” and “Corporate Guarantees” for Transfer Pricing Reference: Section 92B of the Income-tax Act, 1961 Assessment Years: 2012-13 and 2013-14 Status: In Favor of Assessee Legal Issue: Whether the issuance of a “Letter of Comfort” (LOC) to a third-party… Read More »
Allowance of Weighted Deduction under Section 35(2AB) Despite Absence of Form No. 3CL (AY 2012-13) Case Reference: [Taxmann ITAT Ruling / Flamingo Pharmaceuticals Ltd. vs. DCIT] Assessment Year: 2012-13 Status: In Favor of Assessee (Weighted Deduction Allowed) Key Statutory Provisions: Section 35(2AB) of the Income-tax Act, 1961; Rule 6(7A) of the Income-tax Rules, 1962. 1.… Read More »
Restricting Reassessment Jurisdiction for Repetitive Lease Rent Payments under Consistent Accounting Methodology Reference: Section 37(1) of the Income-tax Act, 1961 Assessment Year: 2017-18 Status: In Favor of Assessee (SLP Dismissed) Legal Issue: Can the Revenue reopen an assessment for lease rent payments if the same methodology was consistently accepted in previous years? Summary of Facts:… Read More »
Attachment of Admitted Sum as Benami Property and Remand for Further Prosecution Inquiry Reference: Sections 27, 53, and 54 of the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) Status: Partly in Favor of Assessee / Remanded for Investigation 1. The Core Dispute: Demonetised Cash Deposits and Benami Loans The case involved a sum… Read More »
Classification of Land Sale as Capital Gain vs. Business Income Based on Intention and Holding Period Reference: Sections 2(14), 28(i), and 45 of the Income-tax Act, 1961 Assessment Year: 2004-05 Status: In Favor of Assessee (Capital Gains Upheld) 1. The Core Dispute: Asset Classification and Business Activity The assessee-company, primarily an IATA-approved cargo and customs… Read More »
IMPORTANT INCOME TAX CASE LAWS 08.02.2026 Relevant Section Case Law Title Core Ruling / Summary Citation Section 9 Booking.Com B.V. v. ACIT An online accommodation platform hosted abroad, earning commission on a P2P basis without local assets or agents, does not have a Fixed Place or DAPE in India. Click Here Section 10(35) Mukundbhai M.… Read More »
Reassessment of Section 10(35) Mutual Fund Dividends Quashed (AY 2018-19) 1. The Core Dispute: Alleged Dividend Stripping & Accounting Manipulation For Assessment Year 2018-19, the assessee claimed exemption for dividend income earned from mutual funds under Section 10(35). The Income Tax Department initiated reassessment proceedings based on a survey conducted under Section 133A on a… Read More »
Recharacterizing Intercompany Loans Based on Substance Over Form for Interest Benchmarking Reference: Section 92C read with Rule 10TD Assessment Years: 2013-14 to 2018-19 Status: Partly in Favor of Revenue Legal Issue: Can the TPO recharacterize a floating-rate loan as a fixed-rate loan if the parties fail to adhere to contractual interest terms? Summary of Facts:… Read More »