Daily Archives: September 5, 2026

Statutory Body National Dairy Development Board Exempt From Section 115JB MAT Provisions and Section 14A Book Profit Adjustments

By | September 5, 2026
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Statutory Body National Dairy Development Board Exempt From Section 115JB MAT Provisions and Section 14A Book Profit Adjustments Issue Whether Section 115JB (Minimum Alternate Tax) and consequential adjustments under Section 14A to book profits apply to a statutory body established under a specific Act of Parliament. Facts Assessee Status: The assessee is the National Dairy… Read More »

SLP Dismissed as Reopening Notice Lacking Sanction from Specified Authority Under Section 151 Is Invalid

By | September 5, 2026
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SLP Dismissed as Reopening Notice Lacking Sanction from Specified Authority Under Section 151 Is Invalid Issue Whether a reassessment notice issued under Section 148 is legally sustainable when sanction for its issuance was granted by the Commissioner (Exemption) instead of the Joint Commissioner specified under Section 151 of the Income-tax Act, 1961. Facts Assessment Year:… Read More »

Reassessment Passed Under Section 147 Without First Disposing Objections by Separate Order Quashed

By | September 5, 2026
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Reassessment Passed Under Section 147 Without First Disposing Objections by Separate Order Quashed Issue Whether a reassessment order passed under Section 147 read with Section 143(3) is legally valid when the Assessing Officer fails to dispose of the assessee’s objections to the recorded reasons for reopening by a separate speaking order prior to completing the… Read More »

Section 54GB exemption denied as company incorporation date strictly determines eligibility, not business commencement date.

By | September 5, 2026
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Section 54GB exemption denied as company incorporation date strictly determines eligibility, not business commencement date. Issue Whether an investment in a company incorporated prior to the statutory window satisfies Section 54GB(6) eligibility criteria if manufacturing operations or MSME registration commenced within the specified period. Facts Capital Gains Realized: For Assessment Year 2017-18, the individual assessee… Read More »

Deduction allowed under Section 80IB cannot be reduced while computing deduction under Section 80HHC.

By | September 5, 2026
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Deduction allowed under Section 80IB cannot be reduced while computing deduction under Section 80HHC. Issue Whether the Assessing Officer was justified in reducing the deduction already allowed under Section 80IB from the eligible profits while computing the deduction available under Section 80HHC of the Income-tax Act, 1961. Facts Assessee Profile: The assessee is a public… Read More »

Section 263 Revision Based on External Dictation Quashed; Interest-Free Loan to Overseas Subsidiary Held Quasi-Equity and Purchases Made for Commercial Expediency Allowed

By | September 5, 2026
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Section 263 Revision Based on External Dictation Quashed; Interest-Free Loan to Overseas Subsidiary Held Quasi-Equity and Purchases Made for Commercial Expediency Allowed Issue Issue I (Section 263 Revision): Whether a revision order under Section 263 is legally sustainable when initiated under dictates/pressures from higher authorities rather than through independent application of mind by the Administrative… Read More »

Revision Under Section 263 Quashed as Contribution to Approved Gratuity Fund Exceeding 8.33% Is Allowable

By | September 5, 2026
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Revision Under Section 263 Quashed as Contribution to Approved Gratuity Fund Exceeding 8.33% Is Allowable Issue Whether the Principal Commissioner was justified in invoking revisionary jurisdiction under Section 263 to disallow an assessee’s actuarially-determined contribution to an approved gratuity fund on the ground that it exceeded the 8.33% salary limit specified in Rule 103 of… Read More »

Order rejecting Section 35(2AB) deduction for alleged delay set aside as Form 3CLA was timely filed.

By | September 5, 2026
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Order rejecting Section 35(2AB) deduction for alleged delay set aside as Form 3CLA was timely filed. Issue Whether the prescribed authority was justified in rejecting the assessee’s Form 3CL applications for weighted scientific research deduction under Section 35(2AB) on the ground of delay, even though the assessee had electronically furnished the audit report in Form… Read More »

Reinsurance Cession Disallowance Deleted and 60% Depreciation Allowed on Independent Business Computer Software

By | September 5, 2026
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Reinsurance Cession Disallowance Deleted and 60% Depreciation Allowed on Independent Business Computer Software Issue Whether an Assessing Officer can disallow reinsurance premiums exceeding regulatory limits when IRDAI raises no objection, and whether standalone business software qualifies for depreciation under the higher rate for “Computers including Computer Software”. Facts Reinsurance Premium Disallowance: The assessee, a general… Read More »

Registration rejection under Section 12A set aside for fresh decision due to violation of natural justice.

By | September 5, 2026
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Registration rejection under Section 12A set aside for fresh decision due to violation of natural justice. Issue Whether the rejection of a trust’s registration application under Section 12A(1)(ac)(iii) without issuing a show cause notice or affording a opportunity of hearing is legally sustainable. Facts Assessee-trust filed an application seeking registration under Section 12A(1)(ac)(iii) of the… Read More »