Daily Archives: August 10, 2026

An allotment letter constitutes an agreement under Section 56(2)(x) proviso if consideration was fixed and paid via banking channels.

By | August 10, 2026
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An allotment letter constitutes an agreement under Section 56(2)(x) proviso if consideration was fixed and paid via banking channels. Issue Whether an unregistered allotment letter can constitute an “agreement fixing the amount of consideration” under the first proviso to Section 56(2)(x) of the Income-tax Act, 1961 / Section 92 of the Income-tax Act, 2025, thereby… Read More »

Disallowance of unsubstantiated marketing expenses is restricted to Rs. 5 lakhs, and Section 270A penalty is deleted.

By | August 10, 2026
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Disallowance of unsubstantiated marketing expenses is restricted to Rs. 5 lakhs, and Section 270A penalty is deleted. Issue Whether the complete disallowance of marketing expenses supported only by self-made vouchers is justified under Section 37(1) of the Income-tax Act, 1961 / Section 34 of the Income-tax Act, 2025, when the expenditure is reasonable relative to… Read More »

A trust predominantly engaged in cow protection cannot be classified as a religious entity or denied Section 80G approval based on dormant temple clauses or Gita discourses.

By | August 10, 2026
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A trust predominantly engaged in cow protection cannot be classified as a religious entity or denied Section 80G approval based on dormant temple clauses or Gita discourses. Issue Whether a trust with dominant objects of cow protection, animal welfare, and ethical value education can be categorized as a “Religious Entity” under Section 12AB due to… Read More »

Valid registration granted under Section 12A(1)(ac)(i) cannot be invalidated during renewal without proper cancellation procedures.

By | August 10, 2026
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Valid registration granted under Section 12A(1)(ac)(i) cannot be invalidated during renewal without proper cancellation procedures. Valid registration granted under Section 12A(1)(ac)(i) cannot be invalidated during renewal without proper cancellation procedures. Issue Whether the CIT(Exemptions) can reject a renewal application filed under Section 12A(1)(ac)(ii) on the ground that the original provisional/migrated registration under Section 12A(1)(ac)(i) was… Read More »

Ex-gratia payment under BSNL VRS-2019 qualifies as retrenchment compensation fully exempt under Section 10(10B).

By | August 10, 2026
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Ex-gratia payment under BSNL VRS-2019 qualifies as retrenchment compensation fully exempt under Section 10(10B). Ex-gratia payment under BSNL VRS-2019 qualifies as retrenchment compensation fully exempt under Section 10(10B). Issue Whether ex-gratia compensation received by a retired BSNL employee under the BSNL VRS-2019 is eligible for exemption as retrenchment compensation under Section 10(10B) rather than being… Read More »

Ex-gratia under BSNL Voluntary Retirement Scheme is capital receipt exempt as retrenchment compensation under Section 10(10B).

By | August 10, 2026
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Ex-gratia under BSNL Voluntary Retirement Scheme is capital receipt exempt as retrenchment compensation under Section 10(10B). Issue Whether ex-gratia compensation received by BSNL employees under the BSNL Voluntary Retirement Scheme, 2019 constitutes retrenchment compensation under Section 10(10B) and is fully exempt from tax as a capital receipt, rather than being restricted to the Rs. 5… Read More »

Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15).

By | August 10, 2026
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Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15). Issue Whether an institution providing student transport services on commercial lines against a fee, generating recurring surpluses, is entitled to regular registration under Section 12AB as a charitable entity under Section 2(15) of the Income-tax Act, 1961 /… Read More »

Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15).

By | August 10, 2026
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Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15). Issue Whether an institution providing student transport services on commercial lines against a fee, generating recurring surpluses, is entitled to regular registration under Section 12AB as a charitable entity under Section 2(15) of the Income-tax Act, 1961 /… Read More »

THE TAXATION AND OTHER LAWS (AMENDMENT) BILL, 2026

By | August 10, 2026
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THE TAXATION AND OTHER LAWS (AMENDMENT) BILL, 2026 AS PASSED BY LOK SABHA ON 6.8.2026 Bill No. 150-C of 2026 THE TAXATION AND OTHER LAWS (AMENDMENT) BILL, 2026 ABILL further to amend the Payment and Settlement Systems Act, 2007 and the Income–taxAct, 2025, and to amend the Finance Act, 2026.  BE it enacted by Parliament… Read More »