Tax Cannot Be Recovered from Employee if Employer Deducts TDS but Fails to Deposit It Issue Whether the revenue can deny Tax Deducted at Source (TDS) credit and raise a tax recovery demand on an employee under Section 205 when their employer has deducted TDS from their salary but failed to deposit it into the… Read More »
Remanded for Tribunal to Specifically Adjudicate Mechanical Approval Challenge Under Section 153D of Income-tax Act Issue Whether the Tribunal’s order is sustainable when it failed to specifically adjudicate the assessee’s contention that the approval granted by the JCIT under Section 153D was vitiated due to a mechanical application of mind, despite the issue being properly… Read More »
Interest from investing retained members’ sale proceeds is taxable under section 56, not section 80P(2)(a)(i). Issue Whether interest income earned by a co-operative credit society from investing retained, temporarily idle sale proceeds of its members’ agricultural produce qualifies for a deduction as business income under Section 80P(2)(a)(i), or if it must be classified and taxed… Read More »
Best Judgment Reassessment Is Invalid If Return Filed Is Completely Ignored By Assessing Officer Issue Whether a draft assessment order passed on a “best judgment” basis under Section 144, on the false premise that the assessee failed to file a return of income, is legally sustainable when the return was actually filed in response to… Read More »
Assessment order quashed and remanded due to denial of mandatory personal hearing despite alternative remedy. Issue Whether a writ petition under Article 226 of the Constitution is maintainable against an assessment order despite the availability of an alternative statutory appellate remedy, and whether the order is legally sustainable if passed in violation of mandatory personal… Read More »
Delayed Receivables Subsumed Under TNMM and Working Capital Adjustment Cannot Face Separate Notional Interest Imposition Issue Whether a separate Transfer Pricing (TP) adjustment by imputing notional interest on delayed trade receivables from Associated Enterprises (AEs) is legally sustainable when the transaction has already been benchmarked under the Transactional Net Margin Method (TNMM) and a working… Read More »
Entire Bogus Purchase Value Cannot Be Taxed When Corresponding Sales Are Undisputed Issue Whether the Assessing Officer is justified in adding the entire value of alleged bogus purchases to the assessee’s taxable income under Section 69C when the corresponding sales are accepted, no stock discrepancies exist, and only the profit element embedded in those purchases… Read More »
Reassessment Notice Based on Loose Seized Notings Lacking Direct Link to Assessee Is Quashed Issue Whether the Assessing Officer (AO) can validly issue a reassessment notice under Section 148 on the presumption of “on-money” payment, based solely on an entry in a third-party seized register that was recorded 23 months prior to the actual land… Read More »
Statutorily mandated deposits qualify for section 80P deduction, but surplus fund interest is taxed under section 56. Issue Whether interest income earned on deposits maintained by a co-operative society under statutory compulsion (such as SLR/reserve fund requirements) qualifies as business income eligible for deduction under Section 80P(2)(a)(i). Whether interest or dividend income earned from investing… Read More »
Assessee Entitled To Depreciation On Amalgamation Goodwill And Debt-Free Companies Are Exempt From Notional Interest Adjustments Issue Whether an assessee is entitled to claim depreciation at 25% under section 32(1)(ii) on goodwill arising out of an amalgamation scheme approved by the High Court, in the absence of any specific statutory embargo. Whether a Transfer Pricing… Read More »