Daily Archives: August 5, 2026

Where Section 11(6) bars depreciation, capital expenditure applies as income, but pre-operative expenses cannot be deferred.

By | August 5, 2026
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Where Section 11(6) bars depreciation, capital expenditure applies as income, but pre-operative expenses cannot be deferred. Issue Whether an assessee-trust disallowed from claiming depreciation under Section 11(6) is entitled to claim the actual capital expenditure incurred during the year as application of income under Section 11. Whether charitable organizations can defer pre-operative expenditure to be… Read More »

Provisional registration benefits apply only during pending assessments, but unregistered entities can deduct business expenses.

By | August 5, 2026
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Provisional registration benefits apply only during pending assessments, but unregistered entities can deduct business expenses. Issue Whether the benefit of the second proviso to Section 12A(2) extends to prior assessment years when provisional registration is granted after summary processing under Section 143(1) without active assessment proceedings pending before the Assessing Officer. Whether an entity denied… Read More »

Accumulation under Section 11(2) is permissible for specific revenue purposes aligned with trust objects.

By | August 5, 2026
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Accumulation under Section 11(2) is permissible for specific revenue purposes aligned with trust objects. Issue Whether accumulation of income under Section 11(2) of the Income-tax Act, 1961 is restricted only to capital expenditure/long-term projects, or if it can also be allowed for specific revenue purposes that align with the objects of the trust. Facts The… Read More »

NRI desk costs fall under Section 44C while Section 36(1)(viia) deduction precedes Section 44C computation.

By | August 5, 2026
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NRI desk costs fall under Section 44C while Section 36(1)(viia) deduction precedes Section 44C computation. Issue Whether overseas branch expenses incurred for operating NRI desks soliciting deposits constitute ‘head office expenditure’ under Section 44C or are allowable as separate business expenses under Section 37(1). Whether data processing charges and overseas branch expenses attributable to Indian… Read More »

Notional interest, clerical reporting errors, and substantiated trade payables cannot be taxed as income.

By | August 5, 2026
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Notional interest, clerical reporting errors, and substantiated trade payables cannot be taxed as income. Issue Whether notional interest calculated on interest-free business advances can be brought to tax under Section 4 of the Income-tax Act in the absence of a contractual clause or evidence of actual accrual/receipt. Whether an addition to income can be made… Read More »

Unchallenged Settlement Deed and duly proved registered Will negate partition claim through alleged benami transaction.

By | August 5, 2026
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Unchallenged Settlement Deed and duly proved registered Will negate partition claim through alleged benami transaction. Issue Whether a suit for partition claiming property rights through an alleged benami purchase is maintainable when the absolute title under an unchallenged Settlement Deed and the execution of a registered Will are duly proved. Facts The appellant, daughter of… Read More »

RWA activities confined to members follow doctrine of mutuality and lack public charity under Section 12AB.

By | August 5, 2026
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RWA activities confined to members follow doctrine of mutuality and lack public charity under Section 12AB. RWA activities confined to members follow doctrine of mutuality and lack public charity under Section 12AB. Issue Whether a Residents Welfare Association providing maintenance and facility services exclusively to its members operates under the doctrine of mutuality, thereby lacking… Read More »

GST CASE LAWS 31.07.2026

By | August 5, 2026
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GST CASE LAWS 31.07.2026 Relevant Act Section Case Law Title / Advisory Brief Summary Citation GST Advisory / Portal Update N/A (e-Way Bill Advisory) GSTN Advisory on e-Way Bill Enhancements Implementation of proposed e-Way Bill enhancements scheduled for 01-08-2026 was kept on hold. No changes are required in the production environment, and related advisories/FAQs on… Read More »

Regular bail was granted under Section 132 as charge-sheet was filed and custody exceeded nine months.

By | August 5, 2026
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Regular bail was granted under Section 132 as charge-sheet was filed and custody exceeded nine months. Issue Whether regular bail under Section 483 of Bharatiya Nagarik Suraksha Sanhita, 2023 read with Section 132 of the CGST/RGST Act should be granted to an accused alleged to be involved in a large-scale GST fraud, where the charge-sheet… Read More »

Writ court will not interfere to quash Section 132 criminal proceedings when trial is pending.

By | August 5, 2026
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Writ court will not interfere to quash Section 132 criminal proceedings when trial is pending. Issue Whether a High Court exercising writ jurisdiction should entertain a petition to quash criminal proceedings initiated under Section 132 of the CGST/WBGST Act when the complaint involves disputed factual issues and trial is pending before the jurisdictional criminal court.… Read More »