Rectification Under Section 154 Must Delete Duplicate Addition When Same Cash Deposit Is Assessed in Successor’s Hands Issue Whether an addition of unexplained cash deposit under Section 69A can be retained in the hands of a dissolved firm under a Section 154 rectification proceeding, when the exact same cash deposit has already been assessed and… Read More »
Assessment Orders Passed Without Traceable Section 153D Mandatory Approval Letters Are Illegal And Quashed Issue Whether the revenue bears the burden of proving compliance with the mandatory requirement of prior approval under Section 153D when specifically challenged by the assessee. Whether assessment orders passed under search and seizure provisions are sustainable when the revenue fails… Read More »
Reassessment Passed Without Pecuniary Jurisdiction and Transfer Order Under Section 127 Is Void Ab Initio Issue Whether issuance of notices under Section 148 and Section 143(2) by an Assessing Officer lacking pecuniary jurisdiction renders the reassessment proceedings void ab initio. Whether failure to issue an order under Section 127 transferring jurisdiction to the Assessing Officer… Read More »
Suo-Moto Section 40(a)(ia) Disallowance Does Not Absolve Chapter XVII-B TDS Compliance Obligations Issue Whether a suo-moto 30% disallowance of year-end provisions under Section 40(a)(ia) absolves an assessee from compliance with tax deduction at source (TDS) obligations under Chapter XVII-B and liability as an “assessee in default” under Section 201. Whether non-deduction of TDS on year-end… Read More »
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. 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. 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. 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. 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 »