Reassessment Notice Issued to a Deceased Assessee Is Invalid and Matter Remanded for Fresh Notice to Legal Representatives. Reassessment Notice Issued to a Deceased Assessee Is Invalid and Matter Remanded for Fresh Notice to Legal Representatives. Issue Whether a reassessment notice issued under Section 148 in the name of a deceased assessee is valid, and… Read More »
SBN deposits from loan recoveries explained in books cannot be taxed under Section 68 or denied Section 80P deduction. Issue Whether cash deposits in Specified Bank Notes (SBNs) made by a primary agricultural credit society during demonetization—received towards crop and tractor loan repayments from members—can be added as unexplained cash credit under Section 68 (taxable… Read More »
PMS fees are deductible from capital gains as two plausible legal interpretations exist under Section 48. Issue Whether Portfolio Management Service (PMS) fees/charges can be claimed as a deduction under Section 48 of the Income-tax Act, 1961 / Section 72 of the Income-tax Act, 2025 as expenditure incurred wholly and exclusively in connection with the… Read More »
Order under Section 148A(3) was quashed as the Assessing Officer failed to consider the assessee’s explanation that the marked-to-market loss had already been taxed in the preceding assessment year. Issue Whether Section 148A requires the Assessing Officer to disclose the exact source of information (such as an audit objection) to the assessee, or whether conveying… Read More »
Notional rent cannot be taxed under Other Sources without evidence, and disallowances must be restricted or deleted. Issue Whether notional rent from a sister concern can be taxed under “Income from Other Sources” without evidence of actual receipt or entitlement. Whether building expenses attributable to a sister concern can be disallowed when income is assessable… Read More »
Absence of a formal trust deed cannot preclude Section 12AB registration and Section 80G approval. Issue Whether an old charitable trust established without a formal written trust deed can be denied renewal of registration under Section 12AB merely due to the non-production of an instrument, when alternative documents evidencing its creation and existence are provided… Read More »
Deletion of secondary TP adjustments, adoption of LIBOR benchmarking, and statutory disallowance of education cess. Issue Whether transfer pricing adjustments on exclusivity/transition payments, benchmarking of foreign currency loans, Section 14A disallowances, Section 10A export turnover calculations, TDS credit entitlement, and education cess deductions are sustainable under the Income-tax Act. Facts TP Adjustments on Interest: The… Read More »
Enhanced Leave Encashment Exemption Limit of Rs. 25 Lakh Applies Retroactively to Non-Government Employees. Issue Whether the enhanced leave encashment exemption ceiling of Rs. 25,00,000 under Section 10(10AA) introduced vide Notification No. 31/2023 applies to a non-government employee who retired during AY 2021-22 prior to the notification date. Facts Retirement & Receipt: The assessee, a… Read More »
Reimbursement claims for conveyance, LTA, and cash rent payment additions were remanded for proper verification and enquiry. Issue Whether the disallowance of claimed conveyance and food allowance reimbursements should be remanded to the Assessing Officer for verification of fuel and telephone expenses incurred by the assessee and reimbursed by the employer. Whether the disallowance of… Read More »
BIOSOT, a Telangana State instrumentality, is immune from Income-tax under Article 289(1) of the Constitution. Issue Whether BIOSOT, a statutory society formed under Supreme Court directions to perform ecological restoration under Article 48A, qualifies as an instrumentality of the State of Telangana under Article 12, thereby granting it constitutional immunity from Income-tax under Article 289(1)… Read More »