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 »
Validity of Section 37(1) Disallowance on Transactions Covered by Advance Pricing Agreements Reference: Section 37(1) read with Section 92CC Assessment Year: 2017-18 Status: In Favor of Assessee Legal Issue: Can the Revenue disallow intra-group payments under Section 37(1) if the same transactions are covered by a unilateral Advance Pricing Agreement (APA)? Summary of Facts: The… Read More »
Denial of Section 54B Exemption for Pre-2017 Joint Development Agreements and Remand for Capital Gains Computation Reference: Sections 54B, 54F, 2(47), and 45 of the Income-tax Act, 1961 Assessment Year: 2017-18 Status: In Favor of Revenue / Matter Remanded 1. The Core Dispute: Determination of Transfer Date in Joint Development Agreements The assessee, a landowner,… Read More »
Entitlement to Section 54 Deduction in Reassessment Proceedings Court: Income Tax Appellate Tribunal (ITAT) / High Court (e.g., Navjyoti Sharma vs. DCIT, 2025; ITAT Ruling, 2025) Assessment Year: 2015-16 Statutory Reference: Sections 54, 139, and 148 of the Income-tax Act, 1961 Status: In Favor of Assessee 1. The Core Dispute: Fresh Claims during Reassessment The… Read More »
Taxation of Securitisation Trusts as Revocable Trusts under Section 61 Reference: Sections 61, 63, and 164 of the Income-tax Act, 1961 Assessment Year: 2016-17 Status: In Favor of Assessee (Securitisation Trust) 1. The Core Dispute: Trust vs. Association of Persons (AOP) The assessee, a Securitisation Trust formed under the SARFAESI Act, 2002, by an Asset… Read More »
Search Assessments, Section 153C Jurisdiction, and Additions Based on Uncorroborated Third-Party Excel Sheets Reference: Sections 153C, 153D, 68, 54B, and 147 of the Income-tax Act, 1961 Assessment Years: 2016-17 to 2018-19 Status: In Favor of Assessee I. Illegal Assumption of Jurisdiction under Section 153C due to Non-Furnishing of Satisfaction Note Legal Issue: Can an Assessing… Read More »
Legal Case Digest: Invalidation of Special Audit Orders for Missing Document Identification Number (DIN) Reference: Section 142(2A) read with Section 119 of the Income-tax Act, 1961; CBDT Circular No. 19/2019 Assessment Year: 2023-24 Status: In Favor of Assessee (Orders Quashed) 1. The Core Dispute: Procedural Mandates vs. Special Audit Powers In this case (e.g., Sanjay… Read More »
Admission of Additional Evidence for Correct Matching of TDS Credit with Income Year Reference: Section 199 of the IT Act; Rules 29 and 37BA of the IT Rules; Article 12 of India-Switzerland DTAA Assessment Year: 2020-21 Status: Matter Remanded (In Favor of Assessee for Verification) 1. The Core Dispute: Timing Mismatch between Income and TDS… Read More »
Invalidation of Non-Speaking Orders Rejecting Immunity under Section 270AA Assessment Year: 2023-24 Statutory Reference: Sections 270AA, 270A, 154, and 143(3) of the Income-tax Act, 1961 Status: In Favor of Assessee (Matter Remanded) 1. The Core Dispute: Denial of Immunity Despite Fulfillment of Conditions The assessee-company sought immunity from penalty under Section 270AA after a scrutiny… Read More »