Pr. CIT cannot invoke Section 263 revision without conducting independent enquiry or proving assessment order erroneous. Issue Whether a revision order passed under Section 263 by the Pr. CIT can be sustained when the Assessing Officer (AO) had already verified the issues during assessment and the Pr. CIT failed to conduct an independent enquiry or… Read More »
Provision for discount created using a scientific method and fully discharged in subsequent years is allowable business expenditure. Provision for discount created using a scientific method and fully discharged in subsequent years is allowable business expenditure. Issue Whether a provision for discount created on a scientific basis and subsequently fully discharged constitutes an allowable business… Read More »
Reassessment based on previously examined bank records without new tangible material constitutes impermissible change of opinion. Issue Whether an assessment completed under Section 143(3) can be reopened under Section 147 to examine bank credits and gross receipts that were already scrutinized, in the absence of any new tangible material. Facts Assessee’s return for AY 2012-13… Read More »
Transfer pricing benchmarking requires strict functional, product, and asset comparability while honoring binding administrative directives. Issue Whether transfer pricing adjustments, selection/exclusion of comparable entities, computation of operating margins, allocation of working capital, choice of benchmarking methods (TNMM vs. CUP vs. Berry Ratio), and disallowance of expatriate salaries can be sustained when facing functional dissimilarities, non-binding… Read More »
Estimation of gross profit within industry range and disallowance of reasonable interest on unsecured loans are unsustainable without identifying specific defects in audited accounts. Estimation of gross profit within industry range and disallowance of reasonable interest on unsecured loans are unsustainable without identifying specific defects in audited accounts. Issue Whether the Assessing Officer can reject… Read More »
Contributions to Leave Encashment Fund, pre-AY 2015-16 CSR expenses, and disputed accrued rentals are allowable business deductions for Major Port Authority. Issue Whether contributions to an insurer-managed leave encashment fund, pre-AY 2015-16 CSR expenses under binding guidelines, staff welfare payments misclassified as donations, disputed unrecovered estate rentals, and higher depreciation on port structures are allowable… Read More »