Section 80P Deduction Allowed; No Violation of Mutuality as Dealings Restricted to Members Issue Whether a co-operative society carrying on the business of providing credit facilities is eligible for deduction under Section 80P(2)(a)(i) of the Income-tax Act, 1961, when the Assessing Officer (AO) alleges a violation of the “principles of mutuality,” despite the fact that… Read More »
Benefit of Vacancy Allowance Allowed for Flats Remaining Vacant During COVID-19; Documentary Evidence of “Efforts to Let Out” Relaxed. Issue Whether the Annual Letting Value (ALV) of properties intended to be let out but remaining vacant can be taken as ‘Nil’ under Section 23(1)(c), even if the assessee cannot produce concrete documentary evidence of efforts… Read More »
ALV Restricted to Let-Out Portion Only; Security Deposit Not Deemed Dividend Issue Whether the Assessing Officer (AO) can treat a multi-storey property as “fully let out” and tax the Annual Letting Value (ALV) of the entire building (estimated at ₹1.79 crores) merely because there is a single electricity meter and a substantial security deposit (₹10… Read More »
Madras High Court Remands Matter Due to Computational Errors and Disregard of Proposal to Drop Demand Issue Computational Errors: Whether an adjudication order passed under Section 74 of the GST Act is sustainable when it contains computational errors in the figures adopted for confirming the demand. Contradictory Order: Whether the order is valid if it… Read More »
Regular Bail Granted in GST Fraud Case; Custody Not Justified for Documentary Evidence Issue Whether an accused in a GST fraud case involving fake invoicing and wrongful Input Tax Credit (ITC) is entitled to regular bail after three months of custody, considering that the evidence is primarily documentary/electronic and the tax liability has not yet… Read More »
Enhancing Tax Transparency on Foreign Assets & Income: Understanding CRS & FATCA A. Purpose of CRS and FATCA In this globalized economy, tax transparency and compliance has become paramount to ensure that taxpayers disclose their global income and assets accurately. The Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) are international… Read More »
Direct Tax Collections Continue Strong Growth Momentum: CBDT Releases Time Series Data (FY 2000–01 to FY 2024–25) Issue: To provide a comprehensive, longitudinal view of India’s direct tax collections, showcasing the sustained growth trajectory, expansion of the taxpayer base, and improvements in compliance and tax administration efficiency. Facts: The Central Board of Direct Taxes (CBDT)… Read More »
CBIC Seeks Comments/Inputs on the Legality of Bunching of Multiple Financial Years into a Single Demand Notice under the GST Act Issue: To address the numerous writ petitions filed across various High Courts challenging the practice of issuing a single, consolidated GST demand notice that covers non-compliance across multiple financial years (bunching), and to… Read More »
Revision Quashed as AO Took Plausible View on Goodwill Depreciation; Re-opening on Mere Disagreement Invalid. Issue Whether the Principal Commissioner (PCIT) can invoke Section 263 to deny depreciation on goodwill (representing excess consideration paid for a business acquisition) on the ground that the Assessing Officer (AO) failed to examine the impact of amended provisions, when… Read More »
Payments to Clear Mortgages and Settle Disputes are Deductible Transfer Expenses Under Section 48 Issue Whether amounts paid by a purchaser directly to banks (to clear mortgages where the assessee was a guarantor) and to a third party (to settle a rival ownership dispute) can be claimed by the seller as a deduction under Section… Read More »