Mere Acknowledgment of Unpaid Trade Liabilities in Books Does Not Constitute Remission or Cessation under Section 41(1) Issue Whether trade payables remaining unchanged for over two years can be treated as income due to remission or cessation of liability under Section 41(1) of the Income-tax Act, 1961, when the assessee continues to show them as… Read More »
Additions under Sections 68, 69D, 50CA, and 271D deleted as transactions were verified and recorded. Issue Unsecured Loans (Section 68): Whether additions for unsecured loans under Section 68 can be sustained when the assessee provides PAN, audited financials, confirmations, bank statements, and evidence of repayment with interest after TDS. Ad-Hoc Disallowance of Contractual Payments (Section… Read More »
Unexecuted template agreements cannot serve as CUP comparables, and routine business expenses including RSUs, IT support, and promotions are allowable. Issue Transfer Pricing of Royalty: Whether unexecuted template agreements can be applied under the CUP method to benchmark royalty payments, and whether purchase and royalty transactions can be aggregated under the Resale Price Method (RPM).… Read More »
Uniform trade discounts on defective products do not attract TDS under Section 194C/194J, and PF/ESI deposit timelines require factual verification. Issue Applicability of TDS on Trade Discounts (Section 194C / 194J vs. Section 40(a)(ia)): Whether a uniform 30% discount granted via credit notes to distributors for defective products constitutes payment for repair/professional services subject to… Read More »
Management fees earned from UAR PE are DTAA exempt and statutory book profit adjustments sustained. Issue Taxability of UAR Management Fees: Whether management fees earned from Hotel Meena House Oberoi, Cairo, are exempt from tax in India under Article 24 read with Article 7 of the India-UAR DTAA based on the existence of a Permanent… Read More »