Daily Archives: October 29, 2026

Section 115JB Is Inapplicable to Banking Companies, Provision for Leave Encashment Is Disallowed Under Section 43B, and UPS Eligible for 60% Depreciation

By | October 29, 2026
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Section 115JB Is Inapplicable to Banking Companies, Provision for Leave Encashment Is Disallowed Under Section 43B, and UPS Eligible for 60% Depreciation Issue Whether (1) Section 115JB applies to a banking company, (2) unpaid provision for leave encashment is allowable under Section 43B, and (3) Uninterrupted Power Supply (UPS) is entitled to depreciation at the… Read More »

Only Dividend-Yielding Investments Enter Rule 8D Computation, MAT Excludes Disallowances, CSR Qualifies for Section 80G Deduction, Accounting Standard-Compliant Interest is Deductible, and Section 80-IBA Applies Proportionately

By | October 29, 2026
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Only Dividend-Yielding Investments Enter Rule 8D Computation, MAT Excludes Disallowances, CSR Qualifies for Section 80G Deduction, Accounting Standard-Compliant Interest is Deductible, and Section 80-IBA Applies Proportionately Issue Whether (1) Rule 8D disallowance should be restricted to dividend-yielding investments, (2) Rule 8D additions can be made to book profit under Section 115JB, (3) CSR expenditure qualifies… Read More »

Assessee School’s Exemption Valid as Revision Under Section 263 Impermissible After Proper Enquiry by AO

By | October 29, 2026
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Assessee School’s Exemption Valid as Revision Under Section 263 Impermissible After Proper Enquiry by AO Issue Whether the Principal Commissioner was justified in invoking revisionary jurisdiction under Section 263 to set aside an assessment order where the Assessing Officer had already conducted detailed enquiries and taken a plausible view that the assessee-school formed part of… Read More »

Unregistered Joint Development Agreement Cannot Effect Transfer Under Section 53A Making Reassessment Invalid

By | October 29, 2026
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Unregistered Joint Development Agreement Cannot Effect Transfer Under Section 53A Making Reassessment Invalid Issue Whether reopening an assessment under Section 148 for A.Y. 2013-14 on account of capital gains is valid when the underlying Joint Development Agreement (JDA) executed in F.Y. 2012-13 was unregistered and thus legally ineffective under Section 53A of the Transfer of… Read More »

Period of Holding of Gifted Shares Includes Previous Owner’s Holding Period for Long-Term Capital Gains

By | October 29, 2026
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Period of Holding of Gifted Shares Includes Previous Owner’s Holding Period for Long-Term Capital Gains Issue Whether shares received by way of gift and taxed under Section 56(2)(x) qualify as long-term capital assets by including the previous owner’s holding period, and from which financial year indexation benefit on such shares should commence. Facts Receipt of… Read More »