The Finality of ‘Nil’ Assessments: Section 156 Demand Notice Validity This ruling for AY 2012-13 establishes a critical procedural safeguard: the Revenue cannot demand money from a taxpayer without first passing a formal order that justifies that amount. A demand notice is a “shadow” that cannot exist without the “body” of an assessment order. The… Read More »
FPI vs. Assessing Officer (Penny Stock & India-Mauritius DTAA) This ruling for AY 2019-20 addresses a common conflict where the Revenue treats high-growth Long-Term Capital Gains (LTCG) as “bogus” under the penny stock theory, despite the taxpayer being a regulated institutional investor. The Legal Issue Can the Assessing Officer (AO) invoke Section 68 (Unexplained Cash… Read More »
Reassessment of Stamp Duty Difference: Applicability of Section 56(2)(x) (AY 2018-19) This ruling provides a significant defense for taxpayers who entered into property agreements years before the actual registration, specifically concerning the “Deemed Income” provisions under Section 56(2)(x). The Legal Issue Can the Department tax the difference between the Stamp Duty Value (SDV) and the… Read More »
FLSmidth Private Limited vs. ACIT (ITAT Chennai) I. Depreciation on Goodwill Arising from Amalgamation The Legal Issue Can a company claim depreciation on “Goodwill” created when it pays more for a subsidiary’s assets than their net book value during a merger? Facts of the Case The assessee-company (FLSmidth) merged its wholly-owned subsidiary (FPIL) into itself… Read More »