I. Section 80-IA Deduction to be Allowed from Gross Total Income, Not Restricted to Business Income Issue: Whether the deduction under Section 80-IA of the Income-tax Act, 1961, should be allowed from the Gross Total Income (GTI) or if it is to be restricted to income computed under the head “Profits & Gains of Business… Read More »
Private Discretionary Trust Not Liable for Surcharge if Income Below ₹50 Lakhs, Even at Maximum Marginal Rate Issue: Whether a private discretionary trust, whose income is chargeable to tax at the maximum marginal rate (MMR), is also liable to pay surcharge if its total income is below the threshold of ₹50 lakhs, as specified in… Read More »
Faceless Assessment Set Aside: Insufficient Time for Reply and Violation of Natural Justice Issue: Whether a Faceless Assessment order raising a demand is valid if the assessee was granted insufficient time (one day) to upload voluminous evidence, contrary to the Standard Operating Procedure (SOP) which stipulates a seven-day response time, thereby constituting a flagrant violation… Read More »
Reopening Notice Quashed: NRI’s Property Investment Source Explained Through Banking Channel from USA Issue: Whether an Assessing Officer (AO) has a valid basis to issue a reopening notice under Sections 147 and 148 of the Income-tax Act, 1961, alleging unexplained investment under Section 69, when an NRI assessee purchases immovable property in India, but fully… Read More »
Reopening Based on General Penny Stock Information Without Specific Link to Assessee or Sham Transactions is Invalid Issue: Whether an Assessing Officer (AO) is justified in issuing a reopening notice under Section 147 of the Income-tax Act, 1961, alleging cash credit (under Section 68) for sham share transactions in a penny stock company, when the… Read More »
Unsecured Loan Not Accommodation Entry Merely Because Operators Controlled Lenders; Addition Under Section 68 Deleted Issue: Whether an unsecured loan taken by an assessee from companies controlled by alleged accommodation entry providers can be automatically treated as an accommodation entry and added to the assessee’s income under Section 68 of the Income-tax Act, 1961, especially… Read More »
Rejection of DCF Valuation for Share Premium Invalid Without Specific Errors; Assessee’s Valuation Under Rule 11UA(2)(b) Accepted Issue: Whether the Assessing Officer (AO) was justified in rejecting the Fair Market Value (FMV) of unquoted equity shares determined by an assessee using the Discounted Cash Flow (DCF) method, substituting it with book value, and making an… Read More »
Interest from Staff Loans and Advances is Business Income, Not Income from Other Sources Issue: Whether interest income received by an electricity distribution company from staff loans and advances should be classified as “income from other sources” under Section 56 or “business income” under Section 28(i) of the Income-tax Act, 1961. Facts: For the assessment… Read More »
Discrepancies in Dissolution Clause, Community Benefit, and Genuineness of Activities for Trust Registration Under Section 12AB are Curable; Matter Remanded Issue: Whether discrepancies in a trust’s dissolution clause, an object for the benefit of a particular community, and concerns regarding the genuineness of its activities are curable defects that warrant granting a trust another opportunity… Read More »
Trust Deed Allowing Trustee Remuneration Does Not Itself Disqualify for Section 12AB Registration; Reasonableness and Actual Benefit Are Key Issue: Whether a public charitable trust’s application for registration under Section 12AB (and implicitly for exemptions under Sections 11 and 12) can be rejected merely because its trust deed contains a clause permitting trustees to receive… Read More »