Section 153C assessments are invalid for excluded block periods and unabated years lacking incriminating material. Issue Issue 1: Whether the block of six assessment years under Section 153C must be reckoned from the deemed date of search (the date the satisfaction note is recorded), thereby excluding years that fall outside this newly calculated window. Issue… Read More »
Assessment under section 153C is void if the satisfaction note is recorded after April 1, 2021. Issue Whether the assessment orders framed under Section 153C for the assessment years 2013-14 and 2014-15 are legally valid, given that the Assessing Officer’s satisfaction note was recorded after April 1, 2021, shifting the deemed date of search for… Read More »
Section 80-IB deduction does not reduce profits for computing Section 80HHC deduction; matter remanded. Issue Whether the restriction under Section 80-IA(9) requires the deduction under Section 80-IB to be reduced from business profits before computing the Section 80HHC deduction, or if it merely restricts the final allowability of the total deductions. Facts For the assessment… Read More »
Deduction under Section 80-IB excludes DEPB/duty drawback; Section 80-IA vs 80-HHC computation issue is remanded. Issue Issue 1: Whether the relief under Section 80-IA must be deducted from business profits before computing the export deduction under Section 80-HHC, and whether this needs to be re-evaluated based on recent Supreme Court precedent. Issue 2: Whether incentives… Read More »
Long-term capital losses can be set off against capital gains arising from depreciable assets. Issue Whether the deeming fiction under section 50, which treats gains from depreciable assets as short-term capital gains, converts the underlying long-term asset into a short-term asset, thereby barring the set-off of current year and brought forward long-term capital losses under… Read More »
Reassessment order is invalid as a mere change of opinion on already examined cash deposits. Issue Whether the reassessment proceedings and subsequent addition under section 69A of the Income-tax Act, 1961 were valid when the specific issue of cash deposits had already been examined and accepted during the original assessment under section 143(3). Facts For… Read More »
Cash deposits are fully explained by a co-owner’s accepted advance and verified bank withdrawals Issue Whether a Section 69A addition for unexplained cash deposits totaling ₹48 lakhs can be sustained when a co-owner’s tax proceedings have already validated the primary source of the funds and the remaining deposits are backed by documented bank withdrawals. Facts… Read More »
Reassessment order must be quashed if the Assessing Officer fails to consider the assessee’s replies Reassessment order must be quashed if the Assessing Officer fails to consider the assessee’s replies Issue Whether an order passed under Section 148A(3) and a consequential reassessment notice under Section 148 are legally sustainable if the Assessing Officer fails to… Read More »
Foreign exchange gains are operating income, and expense allocation must follow gross profit margins Issue Whether the Transfer Pricing Officer (TPO) is legally justified in treating business-related foreign exchange gains as non-operating income, modifying common expense allocations from gross profit to turnover basis, and eliminating comparables without persistent losses under the Transactional Net Margin Method… Read More »
Additions for notional interest, ad-hoc expenses, and trade payables are invalid after favorable remand report Issue Whether the Assessing Officer can sustainably maintain tax additions for notional interest on subsidiary loans, ad-hoc expense disallowances, and unexplained trade payables when the revenue’s own remand report subsequently accepts the assessee’s explanations without any adverse remarks. Facts The… Read More »