Credit for TDS deducted by an employer cannot be denied to an employee merely because the employer failed to deposit it. Issue Whether an employee can be denied credit for Tax Deducted at Source (TDS) under Section 199 and subjected to a tax demand under Section 143(1) when the employer deducted the tax from the… Read More »
Disallowance calculated under Section 14A read with Rule 8D cannot be added back to Section 115JB book profit. Issue Whether disallowance computed under Section 14A read with Rule 8D of the Income-tax Rules, 1962, can be added back while calculating “book profit” under Section 115JB of the Income-tax Act, 1961, for Assessment Year 2016-17. Facts… Read More »
Rebate under Section 87A cannot be restricted against Section 111A gains merely by administrative circular. Issue Whether an administrative circular (CBDT Circular No. 13/2025) can restrict or deny the Section 87A rebate against tax payable on short-term capital gains under Section 111A under the new tax regime (Section 115BAC) for Assessment Year 2025-26 when no… Read More »
Unaccounted cash paid for property by NRI medical professionals is plausible from accumulated cash salaries earned abroad. Issue Whether an addition of ₹30 lakhs under Section 69A (and consequential higher taxation under Section 115BBE) as unexplained money is sustainable when the cash consideration paid for flat booking is adequately supported by the accumulated foreign cash… Read More »
Unsubstantiated additions based on uncorroborated third-party documents, estimates, and WhatsApp chats without direct proof are impermissible. Unsubstantiated additions based on uncorroborated third-party documents, estimates, and WhatsApp chats without direct proof are impermissible. Issue Whether an addition towards unaccounted cash receipts (“on-money”) from flat sales under Section 69A can be sustained solely on estimates, WhatsApp chats,… Read More »
Interest on loans used to invest in shares for business expansion is deductible under Section 36(1)(iii). Interest on loans used to invest in shares for business expansion is deductible under Section 36(1)(iii). Issue Whether interest expenditure on borrowed funds utilized to invest in the shares of another company is allowable as a business deduction under… Read More »
Assessing Officer cannot reject valid DCF valuation, treat resident shareholders differently, or disallow operational interest and marketing expenses based merely on non-receipt of an occupancy certificate. Issue Whether the Assessing Officer (AO) can summarily reject a valid DCF valuation method prescribed under Rule 11UA to make additions under Section 56(2)(viib) on shares issued to resident… Read More »