Daily Archives: August 19, 2026

Reassessment Cannot Be Initiated On Mere Suspicion Without Information Indicating Escapement Of Recorded Business Income

By | August 19, 2026
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Reassessment Cannot Be Initiated On Mere Suspicion Without Information Indicating Escapement Of Recorded Business Income Reassessment Cannot Be Initiated On Mere Suspicion Without Information Indicating Escapement Of Recorded Business Income Issue Whether reassessment under Section 148 can be initiated on the basis of a Suspicious Transaction Report (STR) flagging high-value transactions, when all transactions are… Read More »

Notice Under Section 143(2) Is Not Mandatory In Reassessment Proceedings As Section 147/148 Forms A Separate Code

By | August 19, 2026
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Notice Under Section 143(2) Is Not Mandatory In Reassessment Proceedings As Section 147/148 Forms A Separate Code Issue Whether non-issuance and non-service of a notice under Section 143(2) during reassessment proceedings under Sections 147/148 invalidates the reassessment order, or whether Section 147/148 acts as a separate code for assessing escaped income where a Section 143(2)… Read More »

Fair Market Value Of JDA Built-Up Area Determines Consideration; Disallowance Of Interest Expenditure Is Impermissible With Sufficient Interest-Free Funds

By | August 19, 2026
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Fair Market Value Of JDA Built-Up Area Determines Consideration; Disallowance Of Interest Expenditure Is Impermissible With Sufficient Interest-Free Funds Issue Whether, for computing business income under a Joint Development Agreement (JDA) where land converted into stock-in-trade is exchanged for constructed area, the “full value of consideration” is to be determined based on the Fair Market… Read More »

Cooperative Society Entitled To Section 80P Deduction And Full Additional Depreciation On Milk Processing Equipment

By | August 19, 2026
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Cooperative Society Entitled To Section 80P Deduction And Full Additional Depreciation On Milk Processing Equipment Issue Whether a cooperative society engaged in milk procurement is entitled to deduction under Section 80P(2)(d) on interest/dividend income earned from investments in other cooperative entities. Whether milk cans and related equipment qualify as plant and machinery eligible for additional… Read More »

Depreciation Is Allowable On Entire Contractual Cost Of IPL Franchise And TP Adjustments Require Mandatory TPO Reference

By | August 19, 2026
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Depreciation Is Allowable On Entire Contractual Cost Of IPL Franchise And TP Adjustments Require Mandatory TPO Reference Issue Whether “actual cost” under Section 43(1) for claiming depreciation on intangible assets (IPL franchise rights) means the entire contractual consideration or is limited to the actual instalments paid during the relevant year. Whether the Assessing Officer /… Read More »

Expenditure On Minor Repairs, Consumables, And Written-Off Vendor Advances Allowable As Business Revenue Deduction

By | August 19, 2026
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Expenditure On Minor Repairs, Consumables, And Written-Off Vendor Advances Allowable As Business Revenue Deduction Issue Whether expenditure incurred on slotted angles, racks, and modules for existing plant maintenance constitutes revenue expenditure under Section 37(1) or capital expenditure. Whether housekeeping and consumable expenses supported by internal journal entries and shop-floor issue logs with underlying purchase invoices… Read More »

Renewal Of Registration Under Section 12AB Cannot Be Rejected By Insisting On Pre-2021 Registration

By | August 19, 2026
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Renewal Of Registration Under Section 12AB Cannot Be Rejected By Insisting On Pre-2021 Registration Issue Whether the CIT(E) can reject an application for renewal of registration under Section 12AB by invalidating the assessee’s subsisting registration on the ground that it lacked registration under Section 12A/12AA prior to April 1, 2021, without formal cancellation. Whether rejecting… Read More »

Urban Development Authority Pursuing General Public Utility Objects Entitled To Exemption And Depreciation Benefits

By | August 19, 2026
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Urban Development Authority Pursuing General Public Utility Objects Entitled To Exemption And Depreciation Benefits Issue Whether an urban development authority carrying on activities for the advancement of an object of general public utility without a commercial motive is entitled to tax exemption under Section 11 of the Income-tax Act, 1961. Whether generic or non-project-specific grants… Read More »

The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026

By | August 19, 2026
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The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 FAQ’s The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (Chapter IV, sections 130 to 144 of the Finance Act, 2026, read with the Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026)   A.   About the Scheme Q1. What is the Foreign Assets of… Read More »