Monthly Archives: February 2026

Substance Over Form: Actual Investment in a Residential House Overrides the Requirement for a Capital Gains Account Scheme (CGAS) Deposit Issue Whether an assessee is entitled to a deduction under Section 54F if the entire sale consideration is invested in a residential house within the prescribed period, even if the amount was not fully deposited… Read More »

Registered Purchase Agreements Constitute ‘Acquisition’ for Section 50, Regardless of Possession or Actual Use The Legal Issue Whether newly purchased office premises can be included in a “block of assets” to offset capital gains under Section 50, even if the assessee has not yet received physical possession or “put the asset to use” by the… Read More »

AO Directed to Allow Cost of Acquisition and Improvement After Erroneously Taxing Entire Sale Proceeds Issue Whether the Assessing Officer (AO) is justified in taxing the entire sale consideration of properties as “Capital Gains” without allowing deductions for the cost of acquisition or cost of improvement, simply because the assessee failed to produce evidence during… Read More »

Remand Due to Violation of Rule 46A (Additional Evidence) Issue Whether the Commissioner (Appeals) is justified in deleting a disallowance under Section 40A(3) based on additional evidence without giving the Assessing Officer (AO) an opportunity to examine said evidence as required under Rule 46A. Facts The Disallowance: The AO accepted ₹22.45 crores of purchases as… Read More »

Depreciation Disallowed on “Artificial” Goodwill Created in Intragroup Merger Issue Whether an assessee is entitled to depreciation on “Goodwill” generated solely through a merger of two subsidiaries under common ownership, particularly when no new business is added and the transferor’s operations are discontinued. Facts The Structure: The assessee (an Indian ITES company) and another subsidiary… Read More »

Waiver of Long-Term Borrowings (Debentures) is a Capital Receipt and Cannot be Taxed as Business Income or Remission of Liability I. Waiver of Debentures: Taxability under Section 28(iv) and 41(1) Issue Whether the waiver of a principal amount of debentures (long-term borrowing) can be taxed as a business perquisite under Section 28(iv) or as a… Read More »

TNMM is the Most Appropriate Method for Benchmarking Guarantee Fees Where the AE Bears the Primary Risk Issue Whether the Transactional Net Margin Method (TNMM) is the most appropriate method (MAM) for benchmarking guarantee fees when the Indian branch merely provides support services and the overseas Associate Enterprise (AE) bears the entire risk of the… Read More »