Addition to cash-in-hand cannot be made without rejecting audited books of account under Section 145. Addition to cash-in-hand cannot be made without rejecting audited books of account under Section 145. Issue Whether an addition can be made to the assessee’s income under Section 147 on account of cash-in-hand merely based on the difference between opening… Read More »
Reassessment notice under Section 148 is invalid after Settlement Commission order under Section 245D(4) attains finality. Issue Whether the Assessing Officer has jurisdiction to issue a reassessment notice under Section 148 to reopen an assessment after the Income Tax Settlement Commission (ITSC) has passed a final order under Section 245D(4) concluding the assessment for that… Read More »
Deduction under Section 80GGC disallowed as political donation was bogus and returned in cash. Issue Whether an assessee is entitled to claim a deduction under Section 80GGC for a donation made to a political party when investigative findings establish that the donation was bogus and the funds were routed back to the assessee in cash.… Read More »
Reassessment notices beyond three years are invalid if escaped profit is under fifty lakhs. Issue Whether reassessment notices issued beyond three years under Section 148 are valid if the actual income escaping assessment (represented solely by the profit embedded in unaccounted purchases) is less than ₹50 lakhs; whether an assessment for AY 2022-23 based on… Read More »
Cash deposits during demonetization cannot be taxed under Section 69A when bank credits are accepted as business turnover. Issue Whether cash deposits made during the demonetization period in a business bank account can be separately carved out and taxed in their entirety as unexplained money under Section 69A, when the Revenue accepts that the bank… Read More »
Section 153C proceedings are invalid without incriminating material directly linking the searched third party to the assessee. Issue Whether notice and assessment proceedings under Section 153C are sustainable when digital data seized during a search under Section 132 has no direct nexus with the assessee, and additional land documents were provided post-search rather than seized… Read More »
Surrender of tenancy rights is distinct from purchase, and mere agreement for unconstructed property does not attract Section 56(2)(vii)(b). Surrender of tenancy rights is distinct from purchase, and mere agreement for unconstructed property does not attract Section 56(2)(vii)(b). Issue Whether the taxability under Section 56(2)(vii)(b) applies to a redevelopment arrangement involving the surrender of tenancy… Read More »
Deduction claimed under Sections 80-IA/80-IB is not to be subtracted from business profits while computing Section 80HHC deduction. Issue Whether deductions allowed under Sections 80-IA/80-IB must be subtracted from business profits before computing deductions under Section 80HHC, and whether a late-crystallized capital liability can be added to the actual cost under Section 43(1) without identifying… Read More »
No notional interest applies to debt-free AE receivables and reimbursed ESOP costs are deductible. Issue Whether transfer pricing adjustments by imputing notional interest on outstanding receivables from Associated Enterprises (AEs) are sustainable for a debt-free company, and whether ESOP/ESPP costs reimbursed to a foreign parent company are allowable as revenue expenditure under Section 37(1). Facts… Read More »
Delayed PF/ESIC contributions cannot be disallowed via Section 154 when the issue was debatable. Issue Whether an Assessing Officer can invoke Section 154 to rectify an assessment and disallow delayed employees’ PF and ESIC contributions when the issue was legally debatable on the date of the rectification order, and whether such a rectification can be… Read More »