The Commissioner (Appeals) can validly set aside an ex-parte reassessment and remand it for fresh adjudication.

By | June 25, 2026
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The Commissioner (Appeals) can validly set aside an ex-parte reassessment and remand it for fresh adjudication. The Commissioner (Appeals) can validly set aside an ex-parte reassessment and remand it for fresh adjudication. Issue Whether the Commissioner (Appeals) [CIT(A)] is legally empowered under Section 251(1)(a), read with the statutory proviso inserted via the Finance Act, 2024,… Read More »

Assessment orders completed during non-pending settlement applications remain fully valid and enforceable upon application rejection.

By | June 25, 2026
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Assessment orders completed during non-pending settlement applications remain fully valid and enforceable upon application rejection. Issue Whether assessment orders passed by an Assessing Officer are void for lack of jurisdiction or become unenforceable under sections 245HA and 153 upon the subsequent rejection of a settlement application, when those applications were filed after January 31, 2021,… Read More »

Adjusting a current refund against an older tax demand despite a subsisting stay is illegal.

By | June 25, 2026
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Adjusting a current refund against an older tax demand despite a subsisting stay is illegal. Issue Whether the Income Tax Department is legally justified in adjusting a valid tax refund determined for a subsequent year (AY 2025-26) against an outstanding, disputed tax demand of a prior year (AY 2018-19) for which an active interim stay… Read More »

Adjustments retained in a final assessment order must be adjudicated on merits during appeals.

By | June 25, 2026
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Adjustments retained in a final assessment order must be adjudicated on merits during appeals. Issue Whether the Commissioner (Appeals) is legally justified in refusing to decide the merits of a tax adjustment simply because the assessee did not file a separate appeal against the initial Section 143(1) intimation, even though that same adjustment was formally… Read More »

Valid Advance Pricing Agreements bind the Revenue, precluding alternative business expenditure disallowances under Section 37(1).

By | June 25, 2026
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Valid Advance Pricing Agreements bind the Revenue, precluding alternative business expenditure disallowances under Section 37(1). Issue Whether the tax department can alternatively disallow an expenditure under Section 37(1) of the Income-tax Act after the underlying international transaction has already been covered, verified, and accepted under a binding Advance Pricing Agreement (APA) under Section 92CC. Facts… Read More »

Domestic AMP spend without an agreement is not an international transaction, and business losses must be allowed for set-off.

By | June 25, 2026
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Domestic AMP spend without an agreement is not an international transaction, and business losses must be allowed for set-off. Issue On Transfer Pricing: Whether Advertisement, Marketing, and Promotion (AMP) expenses incurred within India by a subsidiary to promote its own product sales constitute an “international transaction” under Chapter X, in the absence of an explicit… Read More »

Reassessment orders passed by the NFAC prior to March 2022 are valid under Section 147A.

By | June 25, 2026
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Reassessment orders passed by the NFAC prior to March 2022 are valid under Section 147A. Reassessment orders passed by the NFAC prior to March 2022 are valid under Section 147A. Issue On Reassessment Jurisdiction: Whether a faceless reassessment order passed by the National Faceless Assessment Centre (NFAC) prior to March 29, 2022, is invalid or… Read More »

Unrealizable insolvency assets must be excluded from Rule 11UA Fair Market Value computations.

By | June 25, 2026
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Unrealizable insolvency assets must be excluded from Rule 11UA Fair Market Value computations. Issue Whether the Assessing Officer (AO) is legally justified in mechanically invoking Section 50CA and Rule 11UA to calculate the Fair Market Value (FMV) of unquoted shares based purely on book values, without excluding unrealizable insolvency assets or considering the price discovered… Read More »

Appellate authorities cannot admit additional financial evidence without recorded reasons and granting the Assessing Officer a rebuttal opportunity.

By | June 25, 2026
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Appellate authorities cannot admit additional financial evidence without recorded reasons and granting the Assessing Officer a rebuttal opportunity. Issue Whether the Commissioner (Appeals) [CIT(A)] is legally justified in reducing a Section 40(a)(ia) disallowance based on new documents produced by the assessee at the appellate stage, without passing a speaking order under Rule 46A or providing… Read More »

Functionally dissimilar entities, entrepreneurs, and product developers are invalid comparables for captive IT service providers.

By | June 25, 2026
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Functionally dissimilar entities, entrepreneurs, and product developers are invalid comparables for captive IT service providers. Issue Whether the Transfer Pricing Officer (TPO) was justified in including functionally dissimilar companies, full-fledged entrepreneurs, and product developers in the final list of comparables for a captive service provider, and whether the ad hoc disallowance of repair and maintenance… Read More »