Category Archives: Income Tax

Contributions to Leave Encashment Fund, pre-AY 2015-16 CSR expenses, and disputed accrued rentals are allowable business deductions for Major Port Authority.

By | August 21, 2026
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Contributions to Leave Encashment Fund, pre-AY 2015-16 CSR expenses, and disputed accrued rentals are allowable business deductions for Major Port Authority. Issue Whether contributions to an insurer-managed leave encashment fund, pre-AY 2015-16 CSR expenses under binding guidelines, staff welfare payments misclassified as donations, disputed unrecovered estate rentals, and higher depreciation on port structures are allowable… Read More »

Transfer Pricing Adjustments Restricted, Foreign Travel Disallowance Quashed, And Carbon Credit Sale Held Capital Receipt

By | August 20, 2026
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Transfer Pricing Adjustments Restricted, Foreign Travel Disallowance Quashed, And Carbon Credit Sale Held Capital Receipt Transfer Pricing Adjustments Restricted, Foreign Travel Disallowance Quashed, And Carbon Credit Sale Held Capital Receipt Issue Whether transfer pricing adjustments for corporate guarantee fees and interest rates should be restricted based on precedents from the assessee’s own case. Whether an… Read More »

INCOME TAX CASE LAWS 19.08.2026

By | August 20, 2026
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INCOME TAX CASE LAWS 19.08.2026 Section Case Law Title Brief Summary Citation Relevant Act Section 2(14) Sun Pharma Laboratories Ltd. v. Deputy Commissioner of Income-tax Partnership interest assigned in an LLP constitutes a capital asset and transfer; matter remanded for proper valuation to compute actual capital gain or loss. Click Here Income-tax Act, 1961 Section… Read More »

Section 271DA Penalty Initiates On Joint Commissioner Notice and Must Begin Within Six Months

By | August 20, 2026
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Section 271DA Penalty Initiates On Joint Commissioner Notice and Must Begin Within Six Months Issue Whether penalty proceedings under Section 271DA are initiated upon the Assessing Officer’s proposal or upon the Joint Commissioner issuing a notice under Section 274. Whether there is a time limit for the Joint Commissioner to initiate Section 271DA penalty proceedings… Read More »

Cost Of Low Pressure Steam Transferred To Paper Division Cannot Be Treated As Nil For Section 80 IA Computation

By | August 20, 2026
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Cost Of Low Pressure Steam Transferred To Paper Division Cannot Be Treated As Nil For Section 80 IA Computation Issue Whether tax authorities can assign a nil cost to low-pressure steam transferred to a paper division and allocate the entire cost exclusively to electricity generation, thereby converting an eligible Section 80-IA captive power unit into… Read More »

Revenue Appeal Dismissed As Monetary Threshold Below CBDT Limits Applies Retroactively To Pending Matters

By | August 20, 2026
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Revenue Appeal Dismissed As Monetary Threshold Below CBDT Limits Applies Retroactively To Pending Matters Issue Whether an Income Tax Appeal filed by the Revenue before the High Court is maintainable when the disputed tax value is below the revised monetary threshold of ₹2 crores prescribed by the CBDT Circular dated 17 September 2024. Facts Appeal… Read More »

Supreme Court Dismisses Revenue SLP As Revision Under Section 263 Requires Independent Proof Of Error And Prejudice

By | August 20, 2026
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Supreme Court Dismisses Revenue SLP As Revision Under Section 263 Requires Independent Proof Of Error And Prejudice Supreme Court Dismisses Revenue SLP As Revision Under Section 263 Requires Independent Proof Of Error And Prejudice Issue Whether a revision order passed under Section 263 is valid when the tax authority fails to independently record and establish… Read More »

Inordinate Seven-Year Delay In Filing Appeal Cannot Be Condoned Merely On Counsel Ill-Health Grounds

By | August 20, 2026
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Inordinate Seven-Year Delay In Filing Appeal Cannot Be Condoned Merely On Counsel Ill-Health Grounds Inordinate Seven-Year Delay In Filing Appeal Cannot Be Condoned Merely On Counsel Ill-Health Grounds Issue Whether an inordinate delay of 2,415 days (nearly seven years) in filing a tax appeal under Section 260A can be condoned on grounds of counsel’s ill-health… Read More »

EDC Paid By Real Estate Developers To HUDA Does Not Attract TDS Provisions Under Section 194I

By | August 20, 2026
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EDC Paid By Real Estate Developers To HUDA Does Not Attract TDS Provisions Under Section 194I Issue Whether External Development Charges (EDC) paid by a real estate developer to HUDA attract TDS under Section 194I as rent, and whether the Revenue can seek a remand to examine Section 194C when identical proceedings in the assessee’s… Read More »

AO Must Consider Section 170A Modified Return And Cannot Add Transfer Pricing Adjustments To MAT

By | August 20, 2026
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AO Must Consider Section 170A Modified Return And Cannot Add Transfer Pricing Adjustments To MAT Issue Section 170A Modified Return: Whether the Assessing Officer is required to adopt a modified return filed u/s 170A post-NCLT merger scheme as the starting point for recomputing total income. Transfer Pricing Adjustments under MAT: Whether transfer pricing adjustments made… Read More »