Penalty Recovered from Employee for Stock Shortage Does Not Constitute Supply Subject to GST Penalty Recovered from Employee for Stock Shortage Does Not Constitute Supply Subject to GST Issue Whether a penalty recovered by an employer from an employee for stock shortages at a retail outlet constitutes a “supply” under Section 7 read with Paragraph… Read More »
INCOME TAX CASE LAW 02.09.2026 Section Relevant Act Case Law Title Citation Brief Summary Section 2(47) Income-tax Act, 1961 Sandhya Roy v. Income-tax Officer Click Here Where reassessment was framed treating execution of a JDA as a transfer without a return filed, the CIT(A) order was set aside and remitted for fresh decision on merits… Read More »
Reassessment Notice Issued Beyond Three Years Under Section 148 Without Section 151(ii) Approval Lacks Valid Jurisdiction Reassessment Notice Issued Beyond Three Years Under Section 148 Without Section 151(ii) Approval Lacks Valid Jurisdiction Issue Whether a consequential reassessment notice issued under Section 148 after the expiry of three years from the end of the relevant assessment… Read More »
One-Day Delay in Filing Form 10B During COVID-19 Condoned Due to Genuine Hardship Issue Whether a one-day delay in filing the audit report in Form 10B during the COVID-19 period should be condoned under Section 119(2)(b) when the delay causes genuine hardship to a charitable trust claiming tax exemption under Section 11. Facts Assessee Status:… Read More »
Contractually Mandated Provision for BOT Major Repairs Based on Scientific Estimates Allowable Under Section 37(1) Issue Whether a provision created for major repair and overhauling expenses, contractually mandated under a Build-Operate-Transfer (BOT) concession agreement and computed on a scientific basis, is allowable as a deductible business expenditure under Section 37(1) for the current assessment year… Read More »
Depreciation on Acquired Intangibles Allowed and Captive Power and Steam Transfers Upheld at Market Value Issue Whether an assessee is entitled to depreciation under Section 32 on intangible assets (brands and trade names) acquired pursuant to a demerger, when the issue is covered by Tribunal orders in the assessee’s own case for earlier years. Whether… Read More »
Approved Resolution Plan under IBC binds all statutory authorities, extinguishing prior tax claims and terminating pending Income Tax proceedings. Issue Whether an Income Tax Appellate Tribunal (ITAT) is bound by an approved Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016 (IBC), requiring the dismissal of Revenue’s pending tax appeals and allowing… Read More »
Rejection of books, closing stock revaluation, and cash deposit additions are unsustainable when supported by books and AS-2 compliance Issue Whether, for Assessment Year 2017-18: Rejection of books of account under Section 145(3) and addition to business income by revaluing closing stock at an alternative NRV is sustainable when the assessee valued damaged stock at… Read More »
Foreign Currency Loans Benchmark via LIBOR, Dissimilar Comparables Excluded, and Receivables Notional Interest Deleted Foreign Currency Loans Benchmark via LIBOR, Dissimilar Comparables Excluded, and Receivables Notional Interest Deleted Issue Whether, for Assessment Year 2013-14: Benchmarking of interest on foreign currency loans to AEs should be based on LIBOR plus spread rather than SBI PLR. Under… Read More »
Section 14A Disallowance and Mark-to-Market Stock Depreciation Invalid Where Interest-Free Surplus Exists Issue Whether Section 14A disallowance can be made without the AO recording valid satisfaction, and whether interest disallowance under Section 14A / Section 36(1)(iii) is sustainable when interest-free funds exceed investments yielding exempt income. Whether provision for mark-to-market loss/diminution in the value of… Read More »