Daily Archives: November 4, 2026

Reporting Errors in Schedule AL Cannot Automatically Trigger Section 69 Unexplained Investment Additions

By | November 4, 2026
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Reporting Errors in Schedule AL Cannot Automatically Trigger Section 69 Unexplained Investment Additions Issue Whether a clerical or inadvertent disclosure error in Schedule AL of the Return of Income regarding closing investment figures can automatically justify an addition under Section 69 read with Section 115BBE without the Assessing Officer leading positive evidence of actual fresh… Read More »

Individual Below Turnover Limit Exempt from TDS under 194A and Interest Expenditure Allowed under Section 57(iii)

By | November 4, 2026
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Individual Below Turnover Limit Exempt from TDS under 194A and Interest Expenditure Allowed under Section 57(iii) Issue Scope of TDS under Section 194A: Whether an individual assessee whose business turnover in the preceding year did not exceed the prescribed monetary limits under the proviso to Section 194A(1) is required to deduct tax at source (TDS)… Read More »

Unexplained Capital Addition Remanded for Bank Verification while GST Late Fees Allowed as Business Expenditure

By | November 4, 2026
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Unexplained Capital Addition Remanded for Bank Verification while GST Late Fees Allowed as Business Expenditure Issue Unexplained Investments (Section 69): Whether capital introduced by a proprietor and bank credit differences can be treated as unexplained investments under Section 69 without allowing the assessee an opportunity to substantiate the source through bank statement reconciliation, borrower confirmations,… Read More »

Non-Compete Fees Are Allowable Revenue Expenditure Under Section 37(1) Over Non-Compete Period

By | November 4, 2026
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Non-Compete Fees Are Allowable Revenue Expenditure Under Section 37(1) Over Non-Compete Period Issue Whether non-compete fees paid under a slump sale agreement constitute an allowable revenue expenditure under Section 37(1) of the Income-tax Act, 1961, amortizable over the non-compete period, in light of binding Supreme Court precedents. Facts Assessment Year: 2011-12. Non-Compete Payment: The assessee… Read More »

Disallowance Under Section 35(2AB) Beyond Scope of Limited Scrutiny Without Prior CIT Approval Is Unsustainable

By | November 4, 2026
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Disallowance Under Section 35(2AB) Beyond Scope of Limited Scrutiny Without Prior CIT Approval Is Unsustainable Issue Whether the Assessing Officer (AO) exceeded the permissible scope of ‘Limited Scrutiny’ by making a disallowance under Section 35(2AB) regarding in-house R&D expenditure when the notice was specifically issued only for ‘Duty Drawback’ and ‘Deduction on Account of Donation… Read More »

Expenditure on Dies And Moulds, Scientific Research, Captive Power Profits, Commissions, And Computer Peripherals Depreciation Allowed

By | November 4, 2026
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Expenditure on Dies And Moulds, Scientific Research, Captive Power Profits, Commissions, And Computer Peripherals Depreciation Allowed Issue Whether deductions and allowances claimed by the assessee for Assessment Year 2007-08 regarding replacement of dies and moulds, scientific research capital/weighted expenditures, captive power generation profits under Section 80-IA, business agency commissions, higher depreciation on UPS/voltage stabilizers as… Read More »

Foreign Currency Loan Benchmarking, Section 14A, Acquisition Interest, and Mining Additions Upheld in Assessee’s Favour

By | November 4, 2026
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Foreign Currency Loan Benchmarking, Section 14A, Acquisition Interest, and Mining Additions Upheld in Assessee’s Favour Issue Whether various tax additions and disallowances made by the Assessing Officer—regarding foreign currency loan transfer pricing adjustments, Rule 14A/8D disallowances, business expansion interest under Section 36(1)(iii), education cess deductibility, sales commission, depreciation on project assets, protective mining additions, administrative… Read More »

Registration Under Section 12AB Cannot Be Denied Solely for Want of Formal Written Trust Deed

By | November 4, 2026
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Registration Under Section 12AB Cannot Be Denied Solely for Want of Formal Written Trust Deed Issue Whether CIT(A)/CIT(E) can reject an application for renewal of registration under Section 12AB (Form No. 10AB) on the ground of non-furnishing of a formal written trust deed or Memorandum of Association, where the trust is registered under a state… Read More »

Employer Cannot Be Held Assessee in Default for Non-Deduction of TDS When Restrained by High Court Order

By | November 4, 2026
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Employer Cannot Be Held Assessee in Default for Non-Deduction of TDS When Restrained by High Court Order Issue Whether an employer-bank can be treated as an “assessee in default” under Section 201/201(1A) for non-deduction of tax at source (TDS) on Leave Travel Concession (LTC) reimbursements involving foreign travel, when such non-deduction was done pursuant to… Read More »

Corporate Guarantee Fee Restricted to 0.5% and Non-Taxable Sales Commission Disallowance Deleted

By | November 4, 2026
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Corporate Guarantee Fee Restricted to 0.5% and Non-Taxable Sales Commission Disallowance Deleted Issue Transfer Pricing (Corporate Guarantee): Whether a corporate guarantee provided by the assessee to a bank for its foreign Associated Enterprise (AE) constitutes an international transaction under Section 92B, and if so, whether the guarantee commission rate of 1% determined by the TPO/DRP… Read More »