Category Archives: Income Tax

Deeming fiction under Section 56(2)(x) cannot be applied retrospectively to transactions executed before its statutory effective date.

By | June 20, 2026
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Deeming fiction under Section 56(2)(x) cannot be applied retrospectively to transactions executed before its statutory effective date. Issue Whether the deeming provisions of Section 56(2)(x) can be invoked for the Assessment Year (AY) 2017-18 to tax the difference between the Stamp Duty Value (SDV) and the actual purchase consideration of a property, given that the… Read More »

Bonus shares held as long-term investments yield exempt LTCG, overriding their original stock-in-trade classification per CBDT circular.

By | June 20, 2026
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Bonus shares held as long-term investments yield exempt LTCG, overriding their original stock-in-trade classification per CBDT circular. Issue Whether the gains arising from the sale of bonus shares should be taxed as Business Income under Section 28(i) on the ground that the original underlying shares were held as stock-in-trade, or if they qualify as Long-Term… Read More »

Adjustment of gratuity against past excess trust contributions and Ind-AS book adjustments are non-disallowable tax entries.

By | June 20, 2026
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Adjustment of gratuity against past excess trust contributions and Ind-AS book adjustments are non-disallowable tax entries. Issue Whether an accounting debit for gratuity representing an adjustment against past excess contributions to an approved Gratuity Trust can be disallowed under Section 40A(7). Whether lease rentals paid without Tax Deducted at Source (TDS) can be allowed as… Read More »

Opening WDV of a block of assets cannot be disturbed to deny depreciation based on a circular.

By | June 20, 2026
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Opening WDV of a block of assets cannot be disturbed to deny depreciation based on a circular. Issue Whether the Principal Commissioner of Income Tax (PCIT) can invoke revisionary jurisdiction under Section 263 to deny depreciation on an intangible asset (NHAI concession rights) by applying CBDT Circular No. 9/2014, when the asset had already entered… Read More »

High Court will not interfere with Appellate Tribunal’s condonation of delay unless arbitrary or perverse.

By | June 20, 2026
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High Court will not interfere with Appellate Tribunal’s condonation of delay unless arbitrary or perverse. Issue Whether the High Court, exercising appellate jurisdiction, should interfere with the Appellate Tribunal’s decision to condone a 763-day delay in filing a statutory appeal by the Revenue, when the Tribunal exercised its discretion in the interest of substantial justice.… Read More »

In the absence of an FTS clause, Thai company’s technical receipts are non-taxable business profits without an Indian PE.

By | June 20, 2026
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In the absence of an FTS clause, Thai company’s technical receipts are non-taxable business profits without an Indian PE. Issue Whether, in the absence of a specific Fees for Technical Services (FTS) clause in the India-Thailand DTAA, payments received by a Thai resident company from Indian group entities for management and technical services can be… Read More »

INCOME TAX CASE LAW 19.6.26

By | June 20, 2026
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NCOME TAX CASE LAW 19.6.26 Relevant Act Section Case Law Title Brief Summary Citation Income-tax Act, 1961 Section 9 Denso International Asia Co. Ltd. v. Assistant Commissioner of Income-tax, International Taxation Management and technical services receipts provided by a Thailand resident without an Indian PE are treated as ‘Business profits’ under Article 7 (not ‘Other… Read More »

INCOME TAX CASE LAW 18.6.2026

By | June 19, 2026
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INCOME TAX CASE LAW 18.6.26 Relevant Act Section Case Law Title Citation Brief Summary Income Tax Act, 1961 Sec 5 Dy. CIT v. Capegemini Technology Services India Ltd. Click Here Foreign exchange fluctuation gains on overseas branches credited to Foreign Currency Translation Reserve are taxable only to the extent they relate to revenue items; gains… Read More »

AO cannot impose a 200% misreporting penalty under Section 270A without specifying the exact statutory clause breached, especially when the taxpayer acted on a bona fide reliance on Form 16.

By | June 19, 2026
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AO cannot impose a 200% misreporting penalty under Section 270A without specifying the exact statutory clause breached, especially when the taxpayer acted on a bona fide reliance on Form 16. Issue Whether a 200% penalty for misreporting under Section 270A can be legally sustained when the Assessing Officer (AO) fails to specify the exact statutory… Read More »

Principal Commissioner cannot invoke revisionary powers under Section 263 when the Assessing Officer has already conducted proper inquiries and verified the expenses during assessment.

By | June 19, 2026
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Principal Commissioner cannot invoke revisionary powers under Section 263 when the Assessing Officer has already conducted proper inquiries and verified the expenses during assessment. Principal Commissioner cannot invoke revisionary powers under Section 263 when the Assessing Officer has already conducted proper inquiries and verified the expenses during assessment. Issue Whether the Principal Commissioner of Income… Read More »