Provision for bad debts is allowable, and income enhancement without serving Section 143 intimation is illegal. Issue Whether a deduction for the provision for bad and doubtful debts under Section 36(1)(vii) is allowable, and whether an enhancement of returned income based on an unserved Section 143 intimation is legally sustainable. Facts Deduction for Bad Debts:… Read More »
Actuarially backed superannuation contributions to remedy severe fund deficits are fully deductible without Rule 87 ceiling limits. Issue Whether an employer’s contribution to an approved superannuation fund to cure an actuarial deficit is subject to the 27% salary limit prescribed under Rule 87 of the Income-tax Rules, 1962, or deductible under Section 36(1)(iv) of the… Read More »
Enhanced compensation for agricultural land is exempt and recharacterization of capital gains is valid. Enhanced compensation for agricultural land is exempt and recharacterization of capital gains is valid. Issue Whether enhanced compensation received for compulsory acquisition of agricultural land qualifies for exemption under Section 10(37), and whether an inadvertent classification of Long-Term Capital Gains as… Read More »
Surplus of co-operative society collected from members and timely returns are exempt from tax. Issue Surplus of co-operative society collected from members and timely returns are exempt from tax. Whether surplus maintenance collections from members of a co-operative premises society are non-taxable under the doctrine of mutuality, and whether fee under Section 234F for late… Read More »
Ind AS accounting entries cannot override tax provisions or trigger double taxation on income. Issue Whether book entries under Ind AS dictate taxability, leading to double taxation or improper disallowances under the Income-tax Act, and the validity of statutory claims regarding ICDS adjustments, TDR cost of acquisition, section 43B disallowances, gift expenses, and weighted scientific… Read More »
Reopening notice under Section 148 is invalid when issued without sanction from the specified authority. Issue Whether a reassessment notice issued under Section 148 of the Income-tax Act, 1961 is valid when approval was granted by the Commissioner (Exemption) instead of the Joint Commissioner specified under Section 151, considering the time relaxation provisions under TOLA,… Read More »