| Income-tax Act, 1961 |
Section 9 |
Caterpillar India (P.) Ltd. v. Deputy Commissioner of Income-tax |
Reimbursement of actual salary to overseas AEs for seconded employees working under the assessee’s control—where tax was deducted under section 192—is a pure reimbursement without an income element and does not require TDS under section 195. |
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| Income-tax Act, 1961 |
Section 12AB |
Shri Om Prakash Bansal Educational & Social Welfare Trust v. Commissioner of Income-tax (Exemptions) |
Cancellation of fresh registration for a society running educational institutions is unsustainable where allegations included related-party rent, commercial letting, high surplus ratios, and familial administration, but lacked evidence of abandoned charitable objects or non-genuineness. |
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| Income-tax Act, 1961 |
Section 14A |
Joint Commissioner of Income-tax v. AON Servies India (P.) Ltd. |
Disallowance under section 14A read with Rule 8D for expenditure related to exempt income is legally unsustainable if the assessee did not derive any exempt income during the relevant previous year. |
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| Income-tax Act, 1961 |
Section 32 |
Caterpillar India (P.) Ltd. v. Deputy Commissioner of Income-tax |
Software licences representing standard application software qualify for depreciation at the rate of 60 per cent when no factual deviation from prior assessment years is established. |
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| Income-tax Act, 1961 |
Section 36(1)(va) |
Indian Coffee Workers Co-Op. Societies Ltd. v. Income-tax Officer |
A one-day delay in remitting employees’ EPF/ESI contributions due strictly to payment gateway failures and technical glitches on the EPFO portal outside the assessee’s control qualifies the remittance as made within the prescribed due date. |
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| Income-tax Act, 1961 |
Section 37(1) |
Caterpillar India (P.) Ltd. v. Deputy Commissioner of Income-tax |
Foreign exchange fluctuation losses arising from the restatement of ECB borrowings utilized for acquiring domestic capital assets fall outside section 43A and are allowable as revenue expenditure under section 37(1). |
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| Income-tax Act, 1961 |
Section 37(1) |
Caterpillar India (P.) Ltd. v. Deputy Commissioner of Income-tax |
When a provision for obsolescence is disallowed and later allowed by the Commissioner (Appeals), the matter must be remanded to the Assessing Officer for the limited purpose of verifying and granting a corresponding adjustment to opening inventory. |
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| Income-tax Act, 1961 |
Section 56 |
Deepa Brijesh Singh v. Income-tax Department |
When property is purchased below stamp duty value with claims of an earlier agreement, part-payment, and possession, the matter requires a remand to examine agreement terms, payment evidence, and the combined applicability of section 56(2)(vii)(b), section 2(47), and section 53A of the Transfer of Property Act. |
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| Income-tax Act, 1961 |
Section 56 |
Tushar Uday Talwalkar v. Income-tax Officer |
Surrendering pre-existing sub-tenancy or occupancy rights under a family arrangement via a redevelopment agreement in exchange for Permanent Alternate Accommodation does not invite additions under section 56(2)(vii)(b) for that year if possession was not received. |
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| Income-tax Act, 1961 |
Section 69 |
Deepa Brijesh Singh v. Income-tax Department |
An addition under section 69 for unexplained investment is unjustified and must be deleted when the assessee provides a sister’s loan confirmation, PAN, and bank statements reflecting genuine banking channels without any detected discrepancies. |
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| Income-tax Act, 1961 |
Section 69A |
ACIT v. Rajiv Sharma |
Loan repayments made to an LLP through banking channels during the year, duly supported by books and returns, cannot be subjected to additions as unexplained money under section 69A based on misconstrued facts and search statements. |
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| Income-tax Act, 1961 |
Section 80G |
Sankat Mochan Hanuman Mandir v. Commissioner of Income-tax (Exemption) |
Eligibility assessment for institutional renewal under section 80G must evaluate whether religious expenditure falls within the 5 percent threshold of total income prescribed under section 80G(5B) rather than rejecting mixed-purpose institutions outright. |
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| Income-tax Act, 1961 |
Section 92C |
Caterpillar India (P.) Ltd. v. Deputy Commissioner of Income-tax |
Claims for customs-duty adjustments in earthmoving equipment segments—driven by higher import intensity and non-Cenvatable customs duties compared to comparables—warrant a remand to the TPO for reconsideration. |
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| Income-tax Act, 1961 |
Section 92C |
Caterpillar India (P.) Ltd. v. Deputy Commissioner of Income-tax |
Issues concerning idle-capacity adjustments under TNMM in manufacturing segments must be remitted to the TPO for reconsideration based on evidence and consistent with prior-year judicial precedents. |
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| Income-tax Act, 1961 |
Section 92C |
Caterpillar India (P.) Ltd. v. Deputy Commissioner of Income-tax |
Treating business support service income as non-operating under manufacturing segments necessitates the corresponding exclusion of matching expenses, requiring a remand to the TPO for recalculation. |
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| Income-tax Act, 1961 |
Section 92C |
Caterpillar India (P.) Ltd. v. Deputy Commissioner of Income-tax |
Provisions written back that were disallowed and offered to tax in past years as operating expenses must remain classified as operating to avoid a double adjustment, subject to verification of nature and quantum. |
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| Income-tax Act, 1961 |
Section 92C |
Caterpillar India (P.) Ltd. v. Deputy Commissioner of Income-tax |
When the TPO finds AE and non-AE segmental results unreliable and notes unclear AE roles in exports, the allocation issue must be remanded for re-examination following historical rulings. |
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| Income-tax Act, 1961 |
Section 92C |
Caterpillar India (P.) Ltd. v. Deputy Commissioner of Income-tax |
Recharacterizing an assessee’s profile from marketing support service provider to commission agent based on survey material requires a remand to the TPO for proper examination of record evidence. |
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| Income-tax Act, 1961 |
Section 92C |
Joint Commissioner of Income-tax v. AON Servies India (P.) Ltd. |
Foreign exchange fluctuation gains and losses must be treated as operating in nature when calculating operating margins under TNMM or NCP methods. |
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| Income-tax Act, 1961 |
Section 92C |
Joint Commissioner of Income-tax v. AON Servies India (P.) Ltd. |
Excluding a comparable company solely for following a different financial year is unjustified if its data can be reasonably extrapolated under Rule 10B, making inclusion conditional upon submitting Rule 10B(4) financials. |
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| Income-tax Act, 1961 |
Section 92C |
Joint Commissioner of Income-tax v. AON Servies India (P.) Ltd. |
Companies that experience extraordinary events (such as business acquisitions) impacting margins during the financial year must be excluded from the final list of comparable companies. |
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| Income-tax Act, 1961 |
Section 92C |
Joint Commissioner of Income-tax v. AON Servies India (P.) Ltd. |
KPO service providers cannot be treated as valid comparables for an assessee engaged in BPO/ITES operations due to fundamental functional dissimilarity. |
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| Income-tax Act, 1961 |
Section 92C |
Joint Commissioner of Income-tax v. AON Servies India (P.) Ltd. |
A company involved in product development and sales without necessary segmental data is functionally incomparable to an ITES/BPO service provider for arm’s length price determination. |
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| Income-tax Act, 1961 |
Section 132B |
Principal Commissioner of Income-tax v. Kapoor Industries Ltd. |
The Department cannot withhold cash seized from a third party—once acknowledged as belonging to the assessee who filed a return offering it as income—after the tax demand on the searched person concludes, requiring a refund after tax adjustments. |
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| Income-tax Act, 1961 |
Section 205 |
Yatish Saxena v. Assistant Commissioner of Income-tax |
A salaried employee whose employer deducts TDS from salary cannot face direct tax demands or penalties when the deductor fails to deposit the withheld tax with the exchequer. |
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