Monthly Archives: October 2026

Reassessment Notice Issued by Jurisdictional Officer Non-Facelessly Is Invalid and Lacks Statutory Jurisdiction

By | October 9, 2026
0 Comment

Reassessment Notice Issued by Jurisdictional Officer Non-Facelessly Is Invalid and Lacks Statutory Jurisdiction Issue Whether a notice issued under Section 148 by a Jurisdictional Assessing Officer without following the automated allocation mechanism and faceless procedure mandated under Section 151A and the e-Assessment scheme is legally valid. Facts Reassessment Proceedings: Reassessment proceedings under Section 148 of… Read More »

Reassessment Notice Issued by Jurisdictional Assessing Officer Under Faceless Regime Quashed for Lacking Jurisdiction

By | October 9, 2026
0 Comment

Reassessment Notice Issued by Jurisdictional Assessing Officer Under Faceless Regime Quashed for Lacking Jurisdiction Issue Whether, under the faceless assessment regime governed by Sections 147, 148, 144B, 151A, and 132 of the Income-tax Act, 1961, a notice issued under Section 148 by a Jurisdictional Assessing Officer (JAO)—even if based on search and seizure information and… Read More »

PBDIT Adopted as PLI for Heavy Fixed Asset Investments and Mandatory Loss Set-Off Upheld

By | October 9, 2026
0 Comment

PBDIT Adopted as PLI for Heavy Fixed Asset Investments and Mandatory Loss Set-Off Upheld Issue Selection of Profit Level Indicator (PLI): Whether Profit Before Depreciation, Interest, and Tax (PBDIT) should be adopted as the most appropriate PLI under TNMM when an assessee’s net profit is significantly affected by high depreciation resulting from substantial investments in… Read More »

ITAT Remands Ex-Parte Assessment of Unexplained Cash Credits to AO for Fresh Consideration Subject to Payment of ₹1 Lakh Cost

By | October 9, 2026
0 Comment

ITAT Remands Ex-Parte Assessment of Unexplained Cash Credits to AO for Fresh Consideration Subject to Payment of ₹1 Lakh Cost Issue Whether an ex-parte assessment making substantial additions for unexplained cash credits under Section 68 and ad-hoc expenditure disallowances under Section 144/144B can be remanded to the Assessing Officer for de-novo consideration when the assessee… Read More »

Commercial Property Disqualification and Urban Location Do Not Bar Exemptions Under Sections 54F and 54B

By | October 9, 2026
0 Comment

Commercial Property Disqualification and Urban Location Do Not Bar Exemptions Under Sections 54F and 54B Issue Eligibility under Section 54F: Whether the ownership of a commercial property (SCO-7, Dhakoli, Zirakpur) disqualifies an assessee from claiming capital gains exemption under Section 54F on the ground of owning more than one residential house on the date of… Read More »

No Transfer Pricing Adjustments Permissible for Non-Existent Real Income from Bankrupt AEs or Inapplicable Valuation Mandates

By | October 9, 2026
0 Comment

No Transfer Pricing Adjustments Permissible for Non-Existent Real Income from Bankrupt AEs or Inapplicable Valuation Mandates Issue Notional Interest on Quasi-Equity OFCDs: Whether transfer pricing provisions permit imputing notional interest on quasi-equity OFCDs where realization is uncertain and unrecognized under accounting principles. Interest Imputation on Invoked Corporate Guarantee Payments: Whether paying an invoked guarantee for… Read More »

Rejection of Section 12AB Renewal Merely for Lacking Formal Trust Deed Held Unjustified and Remanded

By | October 9, 2026
0 Comment

Rejection of Section 12AB Renewal Merely for Lacking Formal Trust Deed Held Unjustified and Remanded Rejection of Section 12AB Renewal Merely for Lacking Formal Trust Deed Held Unjustified and Remanded Issue Whether the CIT(E) was justified in rejecting an application for renewal of registration under Section 12AB of the Income-tax Act, 1961 at the threshold… Read More »

Section 14A Disallowance Restricted to 1% as Rule 8D Inapplicable and Interest Reversal Allowed Under RBI Norms

By | October 9, 2026
0 Comment

Section 14A Disallowance Restricted to 1% as Rule 8D Inapplicable and Interest Reversal Allowed Under RBI Norms Issue Whether Section 14A disallowance read with Rule 8D applies retrospectively for AYs 1997-98 and 1998-99, or if disallowance should be restricted to a reasonable estimate like 1% of exempt interest income. Whether an assessee-bank can claim a… Read More »

70% Sale Consideration Diverted by Overriding Title to Collaborator Cannot Be Taxed as Assessee’s Income

By | October 9, 2026
0 Comment

70% Sale Consideration Diverted by Overriding Title to Collaborator Cannot Be Taxed as Assessee’s Income Issue Whether 70% of the sale proceeds payable to a collaborator under a valid written collaboration agreement stands diverted by overriding title and can be excluded from the builder assessee’s taxable income, and whether the documented cost of acquisition of… Read More »

ITAT Upholds Income Recognition and Disallowance Deletions for Agency Firm, Restricting Specific Expenses and Reclassifying Capital Outgo

By | October 9, 2026
0 Comment

ITAT Upholds Income Recognition and Disallowance Deletions for Agency Firm, Restricting Specific Expenses and Reclassifying Capital Outgo ITAT Upholds Income Recognition and Disallowance Deletions for Agency Firm, Restricting Specific Expenses and Reclassifying Capital Outgo Issues Shortfall in Opening Deposit Liability & Income Recognition: Whether income of an agent firm recognized on the basis of an… Read More »