Category Archives: Income Tax

Reassessment Based on Change of Opinion is Impermissible and Section 201 Proceedings Do Not Bar Section 147 Action

By | October 6, 2026
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Reassessment Based on Change of Opinion is Impermissible and Section 201 Proceedings Do Not Bar Section 147 Action Issue Whether reopening an assessment on foreign remittances after considering details in original scrutiny constitutes an impermissible change of opinion, and whether pending Section 201 proceedings bar reassessment under Section 147. Facts The assessee-company, engaged in contract… Read More »

ESOP Expenditure and Out-of-Court Settlement Compensation for Right to Sue Are Allowable Business Deductions

By | October 6, 2026
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ESOP Expenditure and Out-of-Court Settlement Compensation for Right to Sue Are Allowable Business Deductions Issue Whether ESOP expenditure reimbursable to a foreign holding company is allowable under Section 37(1) during the vesting period, even if options are exercised subsequently. Whether disallowance under Section 40(a)(ia) can be sustained for non-deduction of TDS on out-of-court settlement compensation… Read More »

Royalty Benchmarked Under Aggregated TNMM Cannot Be Segregated and Separately Adjusted for Transfer Pricing

By | October 6, 2026
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Royalty Benchmarked Under Aggregated TNMM Cannot Be Segregated and Separately Adjusted for Transfer Pricing Issue Whether payment of royalty on export sales, once benchmarked and accepted under an aggregated TNMM analysis for the manufacturing segment, can be segregated and separately benchmarked for an upward transfer pricing adjustment. Facts The assessee-company was engaged in the manufacturing,… Read More »

Omission of Section 92BA(i) Is Prospective, Comparables Require Functional Similarity, and Feasibility Costs Are Revenue Expenditure

By | October 6, 2026
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Omission of Section 92BA(i) Is Prospective, Comparables Require Functional Similarity, and Feasibility Costs Are Revenue Expenditure Issue Whether the omission of Section 92BA(i) by the Finance Act, 2017 applies retrospectively, whether loss-making or functionally different companies can be benchmarked as comparables, and whether preliminary expenses incurred for an abandoned business project are allowable as revenue… Read More »

Reassessment Notice Issued Beyond Limitation and Based on Mere Change of Opinion Is Impermissible

By | October 6, 2026
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Reassessment Notice Issued Beyond Limitation and Based on Mere Change of Opinion Is Impermissible Reassessment Notice Issued Beyond Limitation and Based on Mere Change of Opinion Is Impermissible Issue Whether a reassessment notice under Section 148 is valid when issued beyond the prescribed statutory time limit and based on a mere change of opinion after… Read More »

Mere execution of a Tripartite Joint Development Agreement does not constitute a ‘transfer’ under Section 2(47).

By | October 6, 2026
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Mere execution of a Tripartite Joint Development Agreement does not constitute a ‘transfer’ under Section 2(47). Issue Whether the mere execution of a Tripartite Joint Development Agreement dated 25.02.2007, without transferring possession or receiving actual accrued consideration, results in a “transfer” attracting capital gains tax for Assessment Year 2007-08 under Section 2(47) of the Income-tax… Read More »

Capital Gains Tax Cannot Be Levied Under Section 2(47) Without Verifying Land Ownership Status

By | October 6, 2026
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Capital Gains Tax Cannot Be Levied Under Section 2(47) Without Verifying Land Ownership Status Capital Gains Tax Cannot Be Levied Under Section 2(47) Without Verifying Land Ownership Status Issue Whether capital gains under Section 2(47) can be assessed in the hands of an assessee under a Joint Development Agreement without factual verification of whether he… Read More »

INCOME TAX CASE LAWS 03.10.20226

By | October 5, 2026
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INCOME TAX CASE LAWS 03.10.20226   Section Case Law Title Brief Summary Citation Relevant Act N/A CBDT Notification Amendment CBDT amended Notification dated March 30, 1988 (substituting clause (ba)) placing Joint Commissioners of Income-tax (Appeals) and Additional Commissioners of Income-tax (Appeals) under the jurisdiction of the respective Pr. CCITs/CCITs within whose jurisdiction they function. Click… Read More »

Capital gains tax cannot be levied under Section 2(47) without verifying whether the assessee was a power-of-attorney holder or the actual landowner.

By | October 5, 2026
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Capital gains tax cannot be levied under Section 2(47) without verifying whether the assessee was a power-of-attorney holder or the actual landowner. Issue Whether long-term capital gains under Section 2(47) can be assessed in the hands of an assessee under a Joint Development Agreement without verifying whether he acted merely as a power-of-attorney holder/agent rather… Read More »

Supreme Court Dismisses Review Petition, Holding Non-Filing of Returns Despite Tax Collection Amounts to Willful Suppression Under Section 74 CGST Act

By | October 5, 2026
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Supreme Court Dismisses Review Petition, Holding Non-Filing of Returns Despite Tax Collection Amounts to Willful Suppression Under Section 74 CGST Act Supreme Court Dismisses Review Petition, Holding Non-Filing of Returns Despite Tax Collection Amounts to Willful Suppression Under Section 74 CGST Act Issue Whether an assessee who fails to file monthly GSTR-3B returns and pay… Read More »