Category Archives: Income Tax

Assessment is time-barred and invalid if the Assessing Officer fails to pass an order within the prescribed statutory period after a Tribunal remand.

By | June 30, 2026
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Assessment is time-barred and invalid if the Assessing Officer fails to pass an order within the prescribed statutory period after a Tribunal remand. Assessment is time-barred and invalid if the Assessing Officer fails to pass an order within the prescribed statutory period after a Tribunal remand. Issue Whether the failure of the Assessing Officer to… Read More »

Condonation of delay for filing Form 10-IC is rejected due to prolonged corporate non-compliance.

By | June 30, 2026
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Condonation of delay for filing Form 10-IC is rejected due to prolonged corporate non-compliance. Issue Whether the Commissioner was legally justified in rejecting the assessee-company’s application under Section 119(2)(b) for condonation of delay in filing Form 10-IC to claim the concessional tax rate under Section 115BAA, when the application was filed beyond the three-year limit… Read More »

Assessment order violating natural justice is maintainable under writ jurisdiction and liable to be quashed.

By | June 30, 2026
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Assessment order violating natural justice is maintainable under writ jurisdiction and liable to be quashed. Issue Whether a writ petition under Article 226 of the Constitution of India is maintainable against a high-demand assessment order passed in violation of the principles of natural justice and mandatory statutory procedures, despite the availability of an alternative statutory… Read More »

Long-term capital gains from shares held for eight years cannot be treated as a sham penny stock transaction based solely on general investigation reports.

By | June 30, 2026
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Long-term capital gains from shares held for eight years cannot be treated as a sham penny stock transaction based solely on general investigation reports. Issue Whether long-term capital gains earned from the sale of shares held for over eight years can be treated as an unexplained cash credit under Section 68, and accompanied by a… Read More »

Forex losses from capital transactions are non-operating, and functionally dissimilar companies must be excluded.

By | June 30, 2026
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Forex losses from capital transactions are non-operating, and functionally dissimilar companies must be excluded. Issue Issue I & II (Section 92C): Whether foreign exchange losses arising from External Commercial Borrowings (ECBs) and capital transactions should be treated as non-operating expenses when computing the Profit Level Indicator (PLI), and whether an automotive/renewable energy component manufacturer can… Read More »

Employee benefit expenses and coupon interest on Indian currency NCDs are fully allowable.

By | June 30, 2026
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Employee benefit expenses and coupon interest on Indian currency NCDs are fully allowable. Issue Issue I (Section 37): Whether the Assessing Officer can disallow an increase in genuine employee benefit expenses simply because the company’s operational revenue declined during the year. Issue II (Section 92C): Whether Prime Lending Rate (PLR) or External Benchmark-based Lending Rate… Read More »

Provisions of Section 43CA cannot be applied retrospectively to transactions finalized before its enactment.

By | June 30, 2026
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Provisions of Section 43CA cannot be applied retrospectively to transactions finalized before its enactment. Issue Whether the newly inserted provisions of Section 43CA could be applied retrospectively to flat allotments made in a prior year, and whether interest costs and foreign exchange fluctuation losses incurred by a real estate developer can be claimed as period… Read More »

Exemption withdrawal under Section 154 without prior statutory notice violates natural justice and is invalid.

By | June 30, 2026
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Exemption withdrawal under Section 154 without prior statutory notice violates natural justice and is invalid. Issue Whether a rectification order passed under Section 154 that withdraws a trust’s tax exemption and converts a granted refund into a tax demand is legally valid if it is issued without the mandatory prior notice and opportunity of being… Read More »

BSNL VRS 2019 payments constitute retrenchment compensation exempt under Section 10(10B), not Section 10(10C).

By | June 30, 2026
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BSNL VRS 2019 payments constitute retrenchment compensation exempt under Section 10(10B), not Section 10(10C). Issue Whether the compensation received by BSNL employees under the BSNL Voluntary Retirement Scheme, 2019 is in the nature of retrenchment compensation (capital receipt) exempt under Section 10(10B), or a voluntary retirement payment governed by Section 10(10C). Facts The assessees were… Read More »

Lump-sum receipt for extinguishing development rights across entire land parcel is fully deductible against capital gains.

By | June 30, 2026
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Lump-sum receipt for extinguishing development rights across entire land parcel is fully deductible against capital gains. Issue Whether the sum of Rs. 33 crores received by the assessee was a global settlement for extinguishing his entire bundle of rights across the whole 35,600 sq. mtrs. of land—constituting a “transfer” under Section 2(47)—entitling him to claim… Read More »