Daily Archives: September 12, 2026

TP adjustments must be restricted to AE transactions and routine corporate expenses excluded.

By | September 12, 2026
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TP adjustments must be restricted to AE transactions and routine corporate expenses excluded. Issue Whether transfer pricing adjustments must be restricted solely to international transactions with Associated Enterprises (AEs) or extended entity-wide. Whether non-recurring or non-AE expenses (amortization of goodwill, bad debts, legal costs) should be excluded from operating costs under TNMM. Whether the TPO… Read More »

Reopening of assessment is unjustified as optional partnership deed clauses do not mandate paying partner interest or remuneration.

By | September 12, 2026
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Reopening of assessment is unjustified as optional partnership deed clauses do not mandate paying partner interest or remuneration. Issue Whether the mere incorporation of discretionary or amended clauses in a partnership deed regarding interest on capital and partners’ remuneration signifies that such amounts were mandatorily payable to the partner. Whether reopening of the individual partner’s… Read More »

Renewal of registration under Section 12AB cannot be denied based on Section 13 violations or old search material.

By | September 12, 2026
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Renewal of registration under Section 12AB cannot be denied based on Section 13 violations or old search material. Issue Whether the Principal Commissioner of Income Tax (PCIT) can deny renewal of registration under Section 12AB by examining specified violations or fund diversions beyond the immediately preceding three years as stipulated in Rule 17A(g). Whether an… Read More »

Revision under Section 263 upheld for unexamined ECB interest capitalization but set aside on plausible views and roving TDS inquiries.

By | September 12, 2026
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Revision under Section 263 upheld for unexamined ECB interest capitalization but set aside on plausible views and roving TDS inquiries. Issue Whether PCIT properly exercised revisionary power under Section 263 regarding capitalization of ECB interest where the Assessing Officer (AO) conducted no inquiry into the actual utilization of borrowed funds. Whether PCIT’s direction to verify… Read More »

Allotment and buy-back of equity shares known to alleged benamidars does not constitute a benami transaction.

By | September 12, 2026
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Allotment and buy-back of equity shares known to alleged benamidars does not constitute a benami transaction. Allotment and buy-back of equity shares known to alleged benamidars does not constitute a benami transaction. Issue Whether creation of trade payables, conversion into securities premium, and allotment/buy-back of shares known to job workers fall under Section 2(9)(C) of… Read More »