Google AdWords Payments Cover Under Section 194C as Advertising Rather Than Technical Services Issue Whether payments made to Google India for the Google AdWords program constitute “fees for technical services” under Section 194J requiring human intervention, or are standard advertising contracts subject to tax deduction at source at the lower rate under Section 194C. Facts… Read More »
Assessing Officer of Other Person Must Independently Record Satisfaction Before Overcoming Section 153C Sunset Clause Assessing Officer of Other Person Must Independently Record Satisfaction Before Overcoming Section 153C Sunset Clause Issue Whether a Section 153C assessment is legally valid when the Assessing Officer (AO) of the assessee blindly reproduces a forwarding letter from the searched… Read More »
Reopening Barred by Limitation under Section 149 Since Corrected Escaped Income Falls Below Statutory Fifty Lakh Threshold Issue Whether the Assessing Officer was legally justified in issuing a reassessment notice under Section 148 beyond the normal limitation period for an alleged income escape of Rs. 70 lakhs, when a proper evaluation of the transaction records… Read More »
Reassessment Initiated After Dropping Search Proceedings Does Not Bar Relief Under Vivad Se Vishwas Scheme Reassessment Initiated After Dropping Search Proceedings Does Not Bar Relief Under Vivad Se Vishwas Scheme Issue Whether the revenue authorities can integrate dropped Section 153C search proceedings with subsequent Section 147 reassessment proceedings initiated via a Section 133A survey to… Read More »
Unsecured Loan Addition Confirmed Excluding Opening Balance, and Business Loss Set-Off Allowed Prior to 2017 Issue Whether an addition under Section 68 can be sustained for an unsecured loan when the transaction is conducted via banking channels but cross-verification reveals that the lender did not reflect the receivable in his audited accounts, denied the loan… Read More »
Reassessment Based on Scientific Warranty Provisions and Disclosed Security Deposit Forfeitures Is Quashed Reassessment Based on Scientific Warranty Provisions and Disclosed Security Deposit Forfeitures Is Quashed Issue Whether the Assessing Officer is legally justified in initiating reassessment proceedings under Section 147/148 based on a change of opinion regarding a scientifically calculated provision for warranty and… Read More »
Tribunal Justified in Allowing Valid Business Expense Claimed During Assessment Without a Revised Return Issue Whether the Tribunal was legally justified in entertaining and allowing the assessee’s claim for deduction of commission expenditure during assessment proceedings under Section 37(1), even though it was not claimed in the original return of income and no revised return… Read More »
Income from Joint Development Agreement Treated as Stock-In-Trade Remanded for Factual Re-Adjudication Issue Whether the revenue authorities were justified in taxing Rs. 14.33 crores as accrued business income based on a JDA and a Form 26AS entry, and whether capital gains provisions under Section 45(5A) apply when the underlying immovable property is admittedly held as… Read More »
Rulings favor assessee on transfer pricing filters, unearned revenue additions, and net foreign exchange losses. Issue Whether a comparable company can be excluded under the “persistent loss-making” filter if it has reported a profit in one of the preceding three financial years. Whether the Dispute Resolution Panel (DRP) should admit additional evidence to include a… Read More »
Reopening Assessment Beyond Four Years Without New Tangible Material Merely Based on Change of Opinion Invalid Issue Whether the Assessing Officer is justified in reopening an assessment under Section 147/148 after the expiry of four years from the end of the relevant assessment year to deny a Long-Term Capital Gains exemption under Section 10(38), when… Read More »