No TDS applies to stockist margins, unexercised ESOPs, or statutory interest paid to MSME vendors Issue Issue I (Trade Discount vs. Commission): Whether margins retained by stockists under regulatory/quality controls represent taxable “commission” requiring TDS under Section 194H. Issue II (ESOP TDS Timing): Whether the TDS obligation on ESOPs under Section 192 triggers at the… Read More »
Reassessment Notice Validity and Jurisdiction Disputes Must Be Remanded to Assessing Officer for Verification Reassessment Notice Validity and Jurisdiction Disputes Must Be Remanded to Assessing Officer for Verification Issue Whether valid service of a Section 148 notice (by affixation under the Code of Civil Procedure) and the correct jurisdiction of the issuing Assessing Officer are… Read More »
No Penalty Lies for Non-Reporting of PE-Unrelated Transactions and CIT(A) Cannot Enhance on New Grounds Issue Issue I (Section 271AA Penalty): Whether a transfer pricing penalty under Section 271AA for non-reporting of an international transaction is sustainable when the transaction was executed directly by the foreign head office without any effective nexus to its Indian… Read More »
Nil Transfer Pricing Adjustment Remanded and Enhanced Section 80JJAA Deduction Granted Nil Transfer Pricing Adjustment Remanded and Enhanced Section 80JJAA Deduction Granted Issue Issue I (Transfer Pricing): Whether a Transfer Pricing Officer (TPO) can sustain an Arm’s Length Price (ALP) of “Nil” for Global IT services once the assessee furnishes critical additional evidence on appeal… Read More »
Consequential Assessment Automatically Becomes Void Once the Underlying Section 263 Revision Order Is Set Aside Issue Whether a consequential assessment order passed by the Assessing Officer pursuant to a revisionary direction under Section 263 can survive or be adjudicated on merits after the ITAT has quashed the underlying Section 263 revision order. Facts The assessee,… Read More »
Additional Evidence on Transfer Pricing and Enhanced Gross Income Merit Re-evaluation of Deductions Additional Evidence on Transfer Pricing and Enhanced Gross Income Merit Re-evaluation of Deductions Issue Whether a Transfer Pricing Officer (TPO) can sustain an Arm’s Length Price (ALP) of “Nil” for IT services once the assessee submits fresh, comprehensive cost allocation and service… Read More »
Taxing Gross Online Gaming Winnings Without Offsetting Associated Entry Costs and Losses Is Impermissible Taxing Gross Online Gaming Winnings Without Offsetting Associated Entry Costs and Losses Is Impermissible Issue Whether income from online games under Section 115BB must be computed on the basis of “net winnings” by offsetting entry costs and losses, or on the… Read More »
Demonetization Cash Deposits Supported by Valid Marriage Gifts and Savings Cannot Be Treated as Unexplained Issue Whether cash deposits made by a salaried individual during the demonetization period can be treated as unexplained money under Section 69A and taxed under Section 115BBE, when the source is attributed to marriage gifts, household savings, and medical contingency… Read More »
Reassessment Is Invalid If Reasons Are Not Supplied And The Underlying Admission Was Retracted Issue Whether a reassessment under Section 147/148 is legally sustainable when the Revenue fails to supply the complete recorded reasons to the assessee and relies solely on a director’s statement that had been fully retracted prior to the issuance of the… Read More »
Assessing Officer Cannot Reject Registered Valuer’s Improvement Cost Report Without Referencing Valuation Officer Issue Whether the Assessing Officer is legally justified in completely rejecting a registered valuer’s report and treating the cost of property improvement as nil due to a lack of decades-old documentary evidence, without making a statutory reference to the Departmental Valuation Officer… Read More »