Unexplained trade credits are taxable under Section 68 as income from other sources and ineligible for Section 80-IA business deductions.

By | June 26, 2026
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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.

By | June 26, 2026
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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.

By | June 26, 2026
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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 »

Disallowance under Section 14A cannot exceed exempt income, and dynamic expenses lack TDS liability.

By | June 26, 2026
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Disallowance under Section 14A cannot exceed exempt income, and dynamic expenses lack TDS liability. Issue Whether Section 14A disallowance can exceed the actual exempt income earned during the year. Whether a bad debt write-off is allowable if the underlying income was recognized and offered to tax in a previous assessment year. Whether business disallowances under… Read More »

Subsequent registration applies to pending assessments, protecting genuine trust donations from tax additions.

By | June 26, 2026
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Subsequent registration applies to pending assessments, protecting genuine trust donations from tax additions. Issue Whether a Section 12AA registration granted in a subsequent year applies retrospectively under the proviso to Section 12A(2) to validate exemptions under Sections 11 and 12 for pending assessment proceedings, thereby rendering additions under Section 68 and higher tax rates under… Read More »

Registration granted in subsequent year applies to pending assessments, making regular donations eligible for exemption.

By | June 26, 2026
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Registration granted in subsequent year applies to pending assessments, making regular donations eligible for exemption. Issue Whether registration granted under Section 12AA in a subsequent year applies retrospectively to pending assessment proceedings under the proviso to Section 12A(2), thereby validating exemptions under Sections 11 and 12 and rendering additions under Section 68 and higher tax… Read More »

Exemption under Section 10(23EA) cannot be denied via Section 143(1) adjustments on debatable issues without prior intimation.

By | June 26, 2026
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Exemption under Section 10(23EA) cannot be denied via Section 143(1) adjustments on debatable issues without prior intimation. Issue Whether the Central Processing Centre (CPC) is justified in making adjustments under Section 143(1) to deny an exemption under Section 10(23EA) without issuing a prior intimation of the proposed adjustment, and whether a debatable issue involving Section… Read More »

Rural agricultural land is not a capital asset, and hereditary ancestral land incurs no unexplained investment cost.

By | June 26, 2026
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Rural agricultural land is not a capital asset, and hereditary ancestral land incurs no unexplained investment cost. Issue Whether the Assessing Officer was justified in taxing capital gains on the sale of rural agricultural land and making an addition for unexplained investment under Section 69B on hereditary ancestral land. Facts The assessee, an individual, did… Read More »