Monthly Archives: April 2026

Additions in search assessments for “unabated” years are illegal without specific incriminating material. The Dispute: Completed Assessments vs. Search Powers The Conflict: A search was conducted on the assessee. The Assessing Officer (AO) issued notices for the previous six years and made various additions and disallowances. The Revenue’s Stance: Once a search is initiated, the… Read More »

APAs signed with the CBDT are binding; the TPO cannot override them with standard ALP adjustments. The Dispute The assessee, a subsidiary involved in ink manufacturing, had its international transactions adjusted by the Transfer Pricing Officer (TPO). However, the assessee had already concluded a “Rollback” APA with the CBDT covering that specific year. The Verdict… Read More »

Adoption of Stamp Duty Value without referring to a Valuation Officer is illegal if the taxpayer objects. The Dispute: Circle Rate vs. Real-World Value The Conflict: The assessee purchased three properties where the Stamp Duty Value (SDV) was significantly higher than the actual price paid (a gap of ₹94.69 lakhs). The Revenue’s Stance: Under Section… Read More »

Buy-back of shares results in extinguishment of capital, not “acquisition of property” under Section 56(2)(x). The Dispute: Restructuring vs. Asset Acquisition The Conflict: The assessee-company bought back its own equity shares from shareholders at a price lower than the Fair Market Value (FMV). The Revenue’s Stance: The Assessing Officer (AO) argued that the company “purchased”… Read More »

General promotional costs are deductible immediately, while project-specific costs must be capitalized as Work-in-Progress. The Dispute: Immediate Deduction vs. Project Cost The Conflict: The assessee, a real estate developer, followed the Project Completion Method (where profit is only recognized when the project is finished). During the year, they spent money on: Group A: Advertisements, Business… Read More »

Registration cannot be denied based on commercial activity; CSR funds are not “commercial receipts.” I. Registration vs. Exemption: The “Two-Stage” Rule The Conflict: The Commissioner (CIT-E) rejected the trust’s registration (Form 10AB), arguing that because the trust sold processed agricultural goods, it was a “business” under the Proviso to Section 2(15). The Verdict: The Tribunal/Court… Read More »