Reassessment Passed Without Disposing Objections via Separate Speaking Order Is Invalid and Quashed Issue Whether a reassessment order passed under section 147 read with section 143(3) is legally valid when the Assessing Officer fails to dispose of the assessee’s objections to the reasons for reopening by a separate speaking order before proceeding with the assessment.… Read More »
Section 80GGC Deduction Disallowed as Donation to Political Party Was Fake Accommodation Entry Issue Whether a claim for deduction under section 80GGC for a donation made to a registered unrecognized political party can be disallowed under section 148 reassessment when investigation material demonstrates that the contribution was a non-genuine accommodation entry. Facts The assessee claimed… Read More »
Addition under section 69A for locker cash is unsustainable when supported by satisfactory explanations and evidence. Issue Whether cash of ₹7 lakhs found in a bank locker can be added as unexplained money under section 69A when the assessee provides plausible explanations supported by corroborative documentary evidence and the Revenue fails to bring rebutting material.… Read More »
Additions under Sections 69A and 56(2)(x) are unsustainable when consideration is adjusted against prior mortgage liabilities, guideline values are disputed without independent evidence, and cash deposit explanations are rejected without objective verification. Additions under Sections 69A and 56(2)(x) are unsustainable when consideration is adjusted against prior mortgage liabilities, guideline values are disputed without independent evidence,… Read More »
Reassessment beyond four years without new tangible material is an impermissible change of opinion and liable to be quashed. Reassessment beyond four years without new tangible material is an impermissible change of opinion and liable to be quashed. Issue Whether reopening of assessment under section 147 beyond four years from the end of the relevant… Read More »
Out-of-court patent settlement, business promotion, R&D expenses, and related interest are allowable revenue deductions. Issue Whether out-of-court patent litigation settlement payments and interest on borrowings to fund such settlements are allowable business expenditures under section 37(1) and section 36(1)(iii). Whether TP adjustments on captive power plant transfers, AE sales, and loans/share application money can be… Read More »
Foreign exchange fluctuation loss on capital-purpose ECB restatement is capital in nature and non-deductible. Issue Whether foreign exchange fluctuation loss arising on the year-end restatement of an External Commercial Borrowing (ECB) utilized for capital purposes is deductible as revenue business expenditure under section 37(1). Facts The assessee-company availed an External Commercial Borrowing (ECB) from its… Read More »
CIT(E) cannot attach caveats to High Court-mandated registration and approval based on prospective Supreme Court appeals. CIT(E) cannot attach caveats to High Court-mandated registration and approval based on prospective Supreme Court appeals. Issue Whether CIT (Exemption) is justified in attaching a caveat/condition to registration under section 12AB and approval under section 80G stating that benefits… Read More »
Capitalization of interest is unjustified with sufficient interest-free funds, and Section 14A disallowance cannot increase MAT book profits. Capitalization of interest is unjustified with sufficient interest-free funds, and Section 14A disallowance cannot increase MAT book profits. Issue Whether interest expenditure can be capitalized under section 36(1)(iii) when the assessee possesses interest-free funds exceeding its investments… Read More »
Interest under section 40 of Black Money Act is unsustainable where foreign source was disclosed and tax statutory exemptions apply. Issue Whether interest under section 40(1) can be levied when a foreign source is disclosed in the return filed under section 139(1) and the dispute relates only to the quantum of income. Whether interest under… Read More »