Category Archives: Income Tax

Disallowance under section 40(a)(ia) and 40(a)(i) is unsustainable as TDS provisions were not applicable.

By | August 6, 2026
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Disallowance under section 40(a)(ia) and 40(a)(i) is unsustainable as TDS provisions were not applicable. Issue Whether section 40(a)(ia) can be invoked for player winnings payouts that were never claimed as deductible expenditure in the Profit and Loss account, and whether the ₹10,000 threshold under section 194B applies per individual payment rather than aggregate wallet balance.… Read More »

Interest Paid To Foreign HO Deductible, Hedging Capital Gains Exempt, Refund Interest Taxed At DTAA Capped Rate

By | August 6, 2026
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Interest Paid To Foreign HO Deductible, Hedging Capital Gains Exempt, Refund Interest Taxed At DTAA Capped Rate Issue Whether interest paid by an Indian Permanent Establishment (PE) to its foreign Head Office (HO) and overseas branches is allowable as a deductible expense. Whether Transfer Pricing adjustment for guarantee commission under internal CUP should be restricted… Read More »

Section 40(a)(i) Disallowance Upheld On MFN Withdrawal, Goodwill Depreciation, POS Charges, Software Depreciation, Section 80JJAA Allowed

By | August 6, 2026
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Section 40(a)(i) Disallowance Upheld On MFN Withdrawal, Goodwill Depreciation, POS Charges, Software Depreciation, Section 80JJAA Allowed Section 40(a)(i) Disallowance Upheld On MFN Withdrawal, Goodwill Depreciation, POS Charges, Software Depreciation, Section 80JJAA Allowed Issue Whether the disallowance under Section 40(a)(i) for export commission, depreciation on goodwill and software, revenue deduction for land development and Principal Only… Read More »

Hospital Operating Modern Facilities and Earning Surplus Retains Section 2(15) Charitable Character

By | August 6, 2026
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Hospital Operating Modern Facilities and Earning Surplus Retains Section 2(15) Charitable Character Issue Whether running a modern, tertiary-care hospital with premium facilities, significant receipts, and operational surplus alters the charitable character of “medical relief” under Section 2(15) or invalidates Section 12AB registration. Whether alleged non-compliance with indigent patient bed reservation under Section 41AA of the… Read More »

Unexplained Demonetized Cash Deposits And Subsequent RTGS Transfers From Unknown Entities Constitute Benami Transactions Under PBPT Act

By | August 6, 2026
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Unexplained Demonetized Cash Deposits And Subsequent RTGS Transfers From Unknown Entities Constitute Benami Transactions Under PBPT Act Issue Whether unexplained deposits of demonetized currency and subsequent RTGS transfers into a proprietorship’s bank account from unknown entities, unsupported by independent trade evidence, constitute a ‘benami transaction’ under Section 2(9) read with Section 2(26), justifying provisional attachment… Read More »

INCOME TAX CASE LAW 01.08.2026

By | August 5, 2026
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INCOME TAX CASE LAW 01.08.2026 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 2(15) Amaltash Residents Welfare Association v. CIT(E) Activities limited strictly to RWA members with benefits confined to a determinate group are governed by the principle of mutuality and do not qualify as “charitable.” Rejection of Sec 12AB… Read More »

Revenue Appeals Below Monetary Limits Are Dismissed Absent Applicable Exceptions Under CBDT Circular 5/2024

By | August 5, 2026
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Revenue Appeals Below Monetary Limits Are Dismissed Absent Applicable Exceptions Under CBDT Circular 5/2024 Issue Whether a Revenue appeal involving a tax effect below the prescribed CBDT monetary limit can be entertained under the exception clause of Paragraph 3.1(h) of CBDT Circular No. 5/2024 when no substantial question of law arises from the Tribunal’s order.… Read More »

Partial Refunds Must Be Adjusted First Against Accrued Interest and Balance Against Principal Tax Component

By | August 5, 2026
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Partial Refunds Must Be Adjusted First Against Accrued Interest and Balance Against Principal Tax Component Issue Whether a partial tax refund issued by the Revenue during appellate or rectification proceedings should be adjusted first against the interest accrued up to that date under Section 244A, or directly against the principal tax component refundable to the… Read More »

Unexplained Delay in Recording Satisfaction Note Invalidates Section 153C Reassessment Proceedings Against Other Person

By | August 5, 2026
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Unexplained Delay in Recording Satisfaction Note Invalidates Section 153C Reassessment Proceedings Against Other Person Issue Whether a notice issued under Section 153C is legally valid when the Assessing Officer of the searched person delays recording the mandatory satisfaction note by 22 months after completing the search assessment, failing the “immediately after” test established by judicial… Read More »

Supreme Court Disposes Revenue SLP Binding Reassessment Extension Validity Under TLA Act to Rajeev Bansal Ruling

By | August 5, 2026
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Supreme Court Disposes Revenue SLP Binding Reassessment Extension Validity Under TLA Act to Rajeev Bansal Ruling Issue Whether reassessment notices issued under unamended Section 148 after April 1, 2021, for AYs 2013-14 and 2014-15 relying on TLA Act notifications are valid or time-barred under the substituted legal regime. Facts For Assessment Years 2013-14 and 2014-15,… Read More »