Unsubstantiated Additions Under Sections 68 and 69C for Repaid Unsecured Loans Deleted Unsubstantiated Additions Under Sections 68 and 69C for Repaid Unsecured Loans Deleted Issue Whether additions made towards unexplained cash credits under Section 68 and alleged commission expenses under Section 69C can be sustained when the unsecured loans were received via banking channels, bore… Read More »
Reassessment Order Based on Mere Suspicion Without Materials Countering Assessee’s Documented Explanations Quashed Issue Whether a reassessment notice under Section 148 and order under Section 148A(3) based on Suspicious Transaction Reports (STRs) can be sustained when the Assessing Officer fails to substantively deal with the assessee’s supporting documents and possesses no material indicating bogus transactions… Read More »
No Movement of Shares in DEMAT Means No Transfer or Cash Addition; Write-Off Is Not Unexplained Expenditure Issue Whether an addition under Section 68 can be sustained as unexplained cash credit on a notional share transaction where no actual transfer of shares occurred in the DEMAT account, and whether the validity of such transaction warrants… Read More »
Addition Under Section 68 Deleted as Penny Stock Finding Lacked Independent Enquiry and Transacted via Bank and Demat Issue Whether an addition under Section 68 treating long-term capital gains from share transactions as non-genuine penny stock gains can be sustained when based solely on Investigation Wing reports without independent verification by the Assessing Officer. Facts… Read More »
Gain From Repurchase of Unexercised Vested Stock Options Is Taxable as Capital Gains, Not Salary Perquisite Issue Whether the consideration received by an employee upon the repurchase of vested stock options—which were never exercised into shares—is taxable as “Capital Gains” under Section 45 or as a salary “Perquisite” under Section 17(2) of the Income-tax Act,… Read More »
Market Research Expenditure Incurred to Understand Consumer Behaviour and Improve Sales Strategy Constitutes Allowable Revenue Expenditure Issue Whether market research expenditure incurred in the normal course of business to evaluate consumer behaviour, improve marketing strategy, and drive sales constitutes allowable revenue expenditure under Section 37(1) of the Income-tax Act, 1961. Facts Expenditure Claimed: During Assessment… Read More »
Interest-Free Loans to AE Attract Transfer Pricing Adjustments While Ongoing Marketing Costs Remain Revenue Expenditure Interest-Free Loans to AE Attract Transfer Pricing Adjustments While Ongoing Marketing Costs Remain Revenue Expenditure Issue Whether advancing interest-free funds to an Associated Enterprise (AE) constitutes an international transaction requiring transfer pricing benchmarking, irrespective of the availability of interest-free own… Read More »
Recharacterisation of CCDs as Equity Set Aside and Bad Debt Write-Off Allowed Issue Whether the Transfer Pricing Officer (TPO) can re-characterise Compulsorily Convertible Debentures (CCDs) as equity instruments prior to conversion to determine the Arm’s Length Price (ALP) of interest at Nil under the ‘Other Method’ instead of evaluating the CUP Method. Whether bad debts… Read More »
Depreciation Claim Allowed for Vehicle Paid For and Used by Company Despite Registration in Director’s Name Issue Whether a company is entitled to claim depreciation under Section 32 of the Income-tax Act, 1961 on a vehicle purchased and used for its business, when the funds were paid by the company but the registration stands in… Read More »
Concluded APA Implementation Upheld for Transfer Pricing and Disallowances Deleted Following Past Judicial Precedents Issue Whether transfer pricing adjustments under Chapter X (AMP expenses, royalty, HQ expenses, service warranty) must be recomputed in terms of a concluded Advance Pricing Agreement (APA) under Section 92CC covering the relevant assessment and rollback years. Whether disallowances of expatriate… Read More »