| Income-tax Act, 1961 |
Section 2(15) |
Lakhmi Chand Charitable Society v. Principal Commissioner of Income-tax |
Renewal under Section 12AB and approval under Section 80G were directed to be granted where no deficiencies existed in educational activities during the preceding 3 years, and rejection based on past search/retracted statements was invalid. |
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| Income-tax Act, 1961 |
Section 9 |
L. G. Electronics India (P.) Ltd. v. Asstt./Jt./Addl. CIT/ITO, National e-Assessment Centre |
Additional claim for DDT relief under Indo-Korea DTAA was remitted to the AO to await the final decision of the Supreme Court in view of an interim order on the identical issue. |
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| Income-tax Act, 1961 |
Section 32 |
Principal Commissioner of Income-tax (Central) v. Cadila Healthcare Ltd. |
Depreciation is allowable to a company on a vehicle purchased and paid for by it for business purposes, even if registered in the Director’s name. |
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| Income-tax Act, 1961 |
Section 36(1)(vii) |
Andromeda Sales and Distribution (P.) Ltd. v. Assistant Commissioner of Income-tax |
Trade receivables written off in the ordinary course of business cannot be denied bad debt deduction for lack of proof of commercial irrecoverability once statutory conditions are met. |
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| Income-tax Act, 1961 |
Section 37(1) |
Luminous Power Technologies (P.) Ltd. v. Additional Commissioner of Income-tax |
Recurring expenses on brand ambassador fees, design creation, and market research create no enduring capital asset and are fully allowable as revenue expenditure. |
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| Income-tax Act, 1961 |
Section 37(1) |
L. G. Electronics India (P.) Ltd. v. Asstt./Jt./Addl. CIT/ITO, National e-Assessment Centre |
Following the rule of judicial consistency and prior Tribunal orders, salary paid to expatriate employees is deductible business expenditure. |
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| Income-tax Act, 1961 |
Section 37(1) |
L. G. Electronics India (P.) Ltd. v. Asstt./Jt./Addl. CIT/ITO, National e-Assessment Centre |
Royalty paid to an overseas parent covered under a concluded APA and accepted as revenue expenditure in prior years cannot be disallowed as capital expenditure. |
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| Income-tax Act, 1961 |
Section 37(1) |
L. G. Electronics India (P.) Ltd. v. Asstt./Jt./Addl. CIT/ITO, National e-Assessment Centre |
Provision for service warranty computed on a scientific and rational basis is allowable as deductible business expenditure. |
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| Income-tax Act, 1961 |
Section 37(1) |
Principal Commissioner of Income-tax-12 v. Marico Ltd. |
Recurring market research expenditure to study consumer behavior supports normal operations and is allowable as revenue expenditure rather than capital expenditure. |
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| Income-tax Act, 1961 |
Section 45 |
Pramod Kumar Jain v. Deputy Commissioner of Income-tax |
Consideration received by an employee on repurchase of vested, unexercised stock options constitutes transfer of a capital asset taxable as Long-Term Capital Gains, not salary perquisite. |
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| Income-tax Act, 1961 |
Section 68 |
Principal Commissioner of Income-tax v. Aditya Agrawal |
Penny stock additions based solely on Investigation Wing reports without independent inquiry cannot be sustained when transactions are backed by banking and DEMAT records. |
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| Income-tax Act, 1961 |
Section 68 |
Income-tax Officer v. Adhir Barter (P.) Ltd. |
Offline sale of shares without DEMAT movement, contract notes, or broker confirmation is not a valid transfer under Section 2(47); hence, no capital gain/loss or cash credit addition arises. |
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| Income-tax Act, 1961 |
Section 68 |
Venus Infrabuild v. Deputy Commissioner of Income-tax |
Reopening an assessment based purely on a Suspicious Transaction Report (STR) without examining submitted explanations or establishing bogus entries is invalid. |
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| Income-tax Act, 1961 |
Section 68 / 69C |
Harichandana Developers (P.) Ltd. v. Income-tax Officer |
Unsecured loans received and repaid via banking channels with interest and TDS cannot be added as accommodation entries based on generalized third-party statements. |
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| Income-tax Act, 1961 |
Section 68 |
Shivam Silkfab (P.) Ltd. v. Additional/Joint/Deputy Assistant/Commissioner of Income-tax/Income-tax Officer (NFAC) |
Cash deposits already recorded as cash sales in books and included in turnover cannot be added again as unexplained cash credits under Section 68. |
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| Income-tax Act, 1961 |
Section 69 |
Mahendra R. Shah v. Asst. Commissioner of Income-tax |
Arbitrary property valuation cannot replace disclosed investment value without establishing cash nexus, and additions for undisclosed FDRs must be restricted to investment cost, not maturity value. |
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| Income-tax Act, 1961 |
Section 69A |
Tarun Santramdas Varma v. Assistant Commissioner of Income-tax |
Reassessment notice under Section 148 based merely on an inquiry register entry in a broker’s record without direct transaction nexus is invalid. |
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| Income-tax Act, 1961 |
Section 69C |
Principal Commissioner of Income-tax-27 v. Jain Dalichand Gosalia |
Revenue cannot challenge the Tribunal’s bogus purchase estimation (10%) when it accepted the CIT(A)’s earlier restriction (12.5%) without filing an appeal. |
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| Income-tax Act, 1961 |
Section 69C |
Hiramoti Texchem (P.) Ltd. v. Income-tax Officer |
Reopening assessment on fully disclosed purchases based purely on Investigation Wing data without fresh tangible material constitutes an impermissible change of opinion. |
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| Income-tax Act, 1961 |
Section 69C |
Income-tax Officer v. Adhir Barter (P.) Ltd. |
Writing off an already disallowed debit balance in the P&L account does not constitute incurring unexplained expenditure under Section 69C. |
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| Income-tax Act, 1961 |
Section 80G |
Sri Digambar Jain Sammedachal Vikas Committee v. Commissioner of Income Tax Exemption |
Section 80G approval rejection without evaluating the claim that religious expenses were under the 5% threshold or providing personal hearing requires fresh re-examination. |
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| Income-tax Act, 1961 |
Section 92B |
Luminous Power Technologies (P.) Ltd. v. Additional Commissioner of Income-tax |
Interest-free loans to an AE constitute an international transaction benchmarked at 6-month LIBOR + 400 bps, irrespective of internal fund availability. |
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| Income-tax Act, 1961 |
Section 92B |
Luminous Power Technologies (P.) Ltd. v. Additional Commissioner of Income-tax |
Providing a corporate guarantee to a step-down subsidiary without consideration is an international transaction benchmarkable at an arm’s length fee of 0.5%. |
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| Income-tax Act, 1961 |
Section 92BA |
Luminous Power Technologies (P.) Ltd. v. Additional Commissioner of Income-tax |
Omission of Section 92BA(i) without a saving clause invalidates TPO references and subsequent TP adjustments for specified domestic purchase transactions. |
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| Income-tax Act, 1961 |
Section 92C |
Luminous Power Technologies (P.) Ltd. v. Additional Commissioner of Income-tax |
Allocation of common Head Office expenses across units without mark-up does not constitute a service provision under Section 80-IA(8) requiring TP mark-up. |
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| Income-tax Act, 1961 |
Section 92C |
Andromeda Sales and Distribution (P.) Ltd. v. Assistant Commissioner of Income-tax |
Compulsorily Convertible Debentures (CCDs) cannot be re-characterized as equity by the TPO and must be benchmarked as debt instruments under the CUP method. |
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| Income-tax Act, 1961 |
Section 92CC |
L. G. Electronics India (P.) Ltd. v. Asstt./Jt./Addl. CIT/ITO, National e-Assessment Centre |
Concluded Advance Pricing Agreements (APAs) covering AMP, royalty, HQ expenses, and warranty must be fully implemented to determine ALP for all covered dispute years. |
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| Income-tax Act, 1961 |
Section 148 |
SSTA Logistics India (P.) Ltd. v. Assistant Commissioner of Income-tax |
Reassessment notices issued solely on the basis of the Justice M.B. Shah Commission Report on illegal mining were quashed following binding High Court precedents. |
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| Income-tax Act, 1961 |
Section 151 |
Income-tax Officer v. Vinod Bhanji Shah |
Reassessment notices issued after 3 years without sanction from the correct specified authority under Section 151 are void ab initio. |
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| Income-tax Act, 1961 |
Section 264 |
Deputy Commissioner of Income-tax, CPC v. Om Siddhakala Associates |
Revision under Section 264 cannot be used as a backdoor method to claim omitted Section 43CA tolerance limits once the time limit for filing a revised return has lapsed. |
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