Category Archives: Income Tax

Surplus from transfer of restored development rights is taxable as capital gains, not business income.

By | August 7, 2026
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Surplus from transfer of restored development rights is taxable as capital gains, not business income. Issue Whether gains from the transfer of restored development rights following JDA termination are taxable as capital gains or business income, whether such receipts are exempt capital receipts, and whether connected disallowances under Section 40(a)(ia) and claims for encroachment settlement… Read More »

PF/ESI delays due to COVID-19 and flash-flood asset losses are allowable, while TDS delay interest is penal.

By | August 7, 2026
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PF/ESI delays due to COVID-19 and flash-flood asset losses are allowable, while TDS delay interest is penal. Issue Whether delay in remitting employees’ PF/ESI contributions due to COVID-19 lockdown restrictions warrants disallowance under Section 36(1)(va). Whether interest paid on late remittance of Tax Deducted at Source (TDS) is compensatory in nature and allowable as a… Read More »

Manipulated derivative trading losses from illiquid stock options are non-deductible, while reopening approval jurisdiction requires CIT(A) re-examination.

By | August 7, 2026
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Manipulated derivative trading losses from illiquid stock options are non-deductible, while reopening approval jurisdiction requires CIT(A) re-examination. Issue Whether losses generated from trading in illiquid stock option derivatives constitute genuine business losses allowable under Section 28(i) or pre-arranged, fictitious losses. Whether the reassessment proceedings under Section 147/148 were invalid due to procedural non-compliance under Section… Read More »

Matter remanded to verify whether branch office expenses post-business transfer are allowable under Section 28.

By | August 7, 2026
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Matter remanded to verify whether branch office expenses post-business transfer are allowable under Section 28. Issue Whether expenses incurred by a foreign company’s Indian branch office post-transfer of its business on a going-concern basis are allowable under Section 28(i)/29 of the Income-tax Act, 1961. Facts Business Transfer: The assessee, a UK company operating in India… Read More »

CIT (Exemption) cannot make Section 12AB and 80G approvals subject to prospective Supreme Court challenges.

By | August 7, 2026
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CIT (Exemption) cannot make Section 12AB and 80G approvals subject to prospective Supreme Court challenges. CIT (Exemption) cannot make Section 12AB and 80G approvals subject to prospective Supreme Court challenges. Issue Whether the CIT (Exemption), while granting registration under Section 12AB and approval under Section 80G pursuant to a binding High Court ruling, was justified… Read More »

CIT (Exemption) cannot attach conditional caveats based on proposed Supreme Court appeals when granting trust registration.

By | August 7, 2026
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CIT (Exemption) cannot attach conditional caveats based on proposed Supreme Court appeals when granting trust registration. CIT (Exemption) cannot attach conditional caveats based on proposed Supreme Court appeals when granting trust registration. Issue Whether CIT (Exemption), while granting registration under Section 12AB and approval under Section 80G in compliance with a binding judgment of the… Read More »

Liquidated damages, underwriting commission, structuring fees qualify as tax-exempt interest, and Section 36 deductions operate independently.

By | August 7, 2026
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Liquidated damages, underwriting commission, structuring fees qualify as tax-exempt interest, and Section 36 deductions operate independently. Issue Whether liquidated damages, underwriting commission, and structuring fees earned by an infrastructure financial institution qualify as exempt “interest” under Section 10(23G) of the Income-tax Act, 1961. Whether deductions claimed under Section 36(1)(viia)(c) and Section 36(1)(viii) operate independently without… Read More »

Disallowance for non-deduction of TDS on non-resident payments is restricted to 30% under DTAA non-discrimination clause

By | August 7, 2026
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Disallowance for non-deduction of TDS on non-resident payments is restricted to 30% under DTAA non-discrimination clause Disallowance for non-deduction of TDS on non-resident payments is restricted to 30% under DTAA non-discrimination clause Issue Whether disallowance under Section 40(a)(i) for payments made to non-residents without TDS should be restricted to 30% (at par with resident payments… Read More »

Depreciation on full cost of IPL franchise allowed, cash disallowance upheld, unproven expenses disallowed, and specific reimbursements remanded.

By | August 7, 2026
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Depreciation on full cost of IPL franchise allowed, cash disallowance upheld, unproven expenses disallowed, and specific reimbursements remanded. Depreciation on full cost of IPL franchise allowed, cash disallowance upheld, unproven expenses disallowed, and specific reimbursements remanded. Issue Whether an IPL franchise owner is entitled to depreciation on the full capitalized cost of franchise rights, whether… Read More »

Provisionally attaching funds in appellant’s account is justified as unexplained RTGS credits constitute benami transactions

By | August 7, 2026
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Provisionally attaching funds in appellant’s account is justified as unexplained RTGS credits constitute benami transactions Issue Whether the Initiating Officer was justified in treating Shri Asit B. Doshi as the benamidar and the appellant as the beneficial owner under Section 2(9) of the Prohibition of Benami Property Transactions Act, 1988, and provisionally attaching funds in… Read More »