Redemption Fine Paid for Goods Confiscated Due to Import Law Violations Is Not Allowable Expenditure Issue Whether a redemption fine paid for releasing goods confiscated due to a breach of import conditions is an allowable business expenditure under Section 37(1). Facts Context: The matter pertains to Assessment Year 1988-89 involving the allowability of a redemption… Read More »
Write-off of Expired Inventory and Bad Debts Supported by Evidence Is Allowable Issue Whether the write-off of expired finished goods inventory under Section 37(1) is allowable as a business expenditure when supported by physical verification and destruction norms. Whether the write-off of bad debts under Section 36 is allowable when substantiated by debtor details, sale… Read More »
Write-off of Expired Inventory and Bad Debts Supported by Evidence Is Allowable Issue Whether the write-off of expired finished goods inventory under Section 37(1) is allowable as a business expenditure when supported by physical verification and destruction norms. Whether the write-off of bad debts under Section 36 is allowable when substantiated by debtor details, sale… Read More »
Reassessment Based on Re-examining Scrutinized Section 10AA Claim Amounts to Impermissible Change of Opinion Reassessment Based on Re-examining Scrutinized Section 10AA Claim Amounts to Impermissible Change of Opinion Issue Whether the Assessing Officer was justified in issuing a reassessment notice under Section 148 to revisit a Section 10AA deduction claim that was already examined, queried,… Read More »
Section 10A Addition Is Invalid Without Material Proving Assessee’s Dealings Yielded More Than Ordinary Profits Issue Whether the Assessing Officer was justified in making additions under Section 10A(7) read with Section 80IA(10) merely because the assessee’s net profit margin (27.86%) was higher than the average profit margin of comparables (9.35%), without establishing that the dealings… Read More »
Delay in Filing Appeal Condoned as CA’s Procedural Error Constitutes Sufficient Cause Issue Whether an inordinate delay of 1,797 days in filing an appeal before the CIT(A)/NFAC should be condoned and the matter restored for adjudication on merits when the delay was caused by an inadvertent error on the part of the tax consultant. Facts… Read More »
Interest from Head Office, Hub Costs, Broken-Period Interest, Salary Reimbursements, MTM Losses, and Securities Diminution Are Allowable Issue Whether interest credited to an Indian Permanent Establishment (PE) branch by its foreign Head Office/overseas branches is taxable in India under Section 9 read with Article 7 of the India-USA DTAA. Whether centralized operational hub expenses paid… Read More »
Disallowance of Intangible Asset Depreciation on Opening WDV, Unearned Advance Subscription Revenue, and Interest on Inherited Slump-Sale Borrowings Is Impermissible Without Rebuttal or Finding of Unreasonableness Disallowance of Intangible Asset Depreciation on Opening WDV, Unearned Advance Subscription Revenue, and Interest on Inherited Slump-Sale Borrowings Is Impermissible Without Rebuttal or Finding of Unreasonableness Issue Whether depreciation… Read More »
Once Form 2 Is Issued Under VSVS, CIT(A) Cannot Remand Assessment; Proceedings Stand Settled Conclusively Issue Whether the CIT(A)/NFAC and Tribunal erred in deciding and remanding an appeal when a declaration under the Direct Tax Vivad se Vishwas Scheme, 2024 had already been accepted with Form No. 2 issued and full payment made. Facts Pendency… Read More »
Company Performing Broader Auto-Component Manufacturing Functions Is a Valid Transfer Pricing Comparable Under TNMM Issue Whether a company performing broader auto-component manufacturing functions can be selected as a valid comparable under the Transactional Net Margin Method (TNMM), especially when accepted in subsequent assessment years. Whether the Assessing Officer (AO) is required to grant set-off of… Read More »