Assessment framed by an officer lacking jurisdiction without a Section 127 transfer order is void. Issue Whether an assessment order passed under Section 143(3) by an Assessing Officer at New Delhi is legally sustainable when jurisdiction over the assessee vest with the Assessing Officer at Mumbai, and no formal transfer order under Section 127 was… Read More »
Deduction under Section 80P cannot be denied in full over nominal membership limits. Issue Whether a co-operative society can be denied its deduction under Section 80P(2)(a)(i) in full on the grounds that it admitted nominal or associate members beyond the statutory 15% limit prescribed under State law, and whether the disallowance of an interest provision… Read More »
Delay in filing Form 10AB must be condoned when registration is rejected without checking charitable merits. Delay in filing Form 10AB must be condoned when registration is rejected without checking charitable merits. Issue Whether the CIT(Exemption) is legally justified in summarily rejecting an application for final approval under Section 80G(5) solely on the grounds of… Read More »
Estimated disallowances of recorded expenses cannot be treated as unexplained expenditure under Section 69C. Estimated disallowances of recorded expenses cannot be treated as unexplained expenditure under Section 69C. Issue Whether an ad-hoc, estimated disallowance of routine business expenses already recorded in the books of accounts can legally be categorized as “unexplained expenditure” under Section 69C,… Read More »
Bogus purchase additions based on mere suspicion and estimation without book defects must be deleted. Issue Whether the Assessing Officer and the CIT(A) were justified in sustaining an addition for alleged bogus purchases based on third-party search statements, despite the assessee providing comprehensive quantitative reconciliations, direct Section 133(6) confirmations, and faultless audited books of account.… Read More »
Section 68 Addition Based On a Third-Party Slip Stood Vitiated Due To Denied Cross-Examination Section 68 Addition Based On a Third-Party Slip Stood Vitiated Due To Denied Cross-Examination Issue Whether an assessment order making an addition under Section 68 is legally sustainable when it relies entirely on a seized slip and a statement from a… Read More »
CIT(A) was justified in deleting Section 68 addition as the share sale transaction was fully substantiated. Issue Whether the Commissioner of Income-tax (Appeals) [CIT(A)] was justified in deleting an addition made by the Assessing Officer under Section 68 on account of an alleged bogus sale of unlisted equity shares by the amalgamating companies prior to… Read More »
Unexplained trade credits are taxable under Section 68 as income from other sources and ineligible for Section 80-IA business deductions. Issue Whether undisclosed trade credits can be treated as business profits eligible for deductions under Section 80-IA, or if they must be assessed as deemed income from other sources under Section 68 when the assessee… Read More »
DVO valuation replaces stamp duty valuation, making safe harbor limits applicable to the revised value. Issue Whether the safe harbor rule applies to the revised value determined by the Departmental Valuation Officer (DVO) once an assessee disputes the stamp duty valuation under Section 56(2)(x). Facts The assessee purchased a residential flat for a consideration of… Read More »
Compensatory interest, zero-exempt-income Section 14A disallowance, 80G CSR deductions, and workforce depreciation are allowed. Issue Whether interest paid on a delayed license migration fee is a deductible revenue expenditure. Whether a disallowance under Section 14A can be made when the assessee earns no exempt income during the year. Whether corporate social responsibility (CSR) expenditure paid… Read More »