Rebate Under Section 87A Cannot Be Denied on Section 112 Capital Gains for Assessment Year 2024-25 Issue Whether a resident individual opting for the new tax regime under Section 115BAC is eligible to claim a tax rebate under Section 87A against long-term capital gains taxable under Section 112, provided their total income does not exceed… Read More »
Interest Income From Mandatory Bank Deposits Is Business Income Eligible For Section 80P Deduction Issue Whether interest income earned by a co-operative society from statutory and compulsory deposits placed with co-operative or scheduled banks in compliance with State co-operative laws is assessable as business income eligible for deduction under Section 80P(2)(a)(i), or as income from… Read More »
Reassessment Notice Quashed as Seized Third-Party Loose Paper Failed to Establish a Live Link Reassessment Notice Quashed as Seized Third-Party Loose Paper Failed to Establish a Live Link Issue Whether a reassessment notice issued under Section 148 to tax alleged “on-money” under Section 69A is valid when it is based solely on a third-party seized… Read More »
Orders Denying Capital Gains Exemption Set Aside for Failure to Consider Alternative Section 54EB Claim Issue Whether the tax authorities’ blanket denial of a capital gains exemption constituted a non-application of mind because they failed to consider the assessee’s alternative request to evaluate the reinvested long-term capital gains under Section 54EB after Section 54B was… Read More »
Delay of 252 days condoned by ITAT; CIT(A) order dismissing JDA capital gains claim in limine set aside for failure to evaluate delay condonation. Issue Whether the Income Tax Appellate Tribunal (ITAT) should condone a 252-day delay in filing an appeal by a deceased assessee’s legal heir, and whether the CIT(A) was justified in dismissing… Read More »
TPO cannot value actual intra-group services at ‘Nil’ based on a subjective ‘benefit test’, and sequential commercial disallowance under section 37(1) cannot survive if the TP adjustment is deleted. Issue Whether the Transfer Pricing Officer (TPO) was legally justified in determining the Arm’s Length Price (ALP) of intra-group services at ‘Nil’ based on a subjective… Read More »
Consequential verification by AO infirms PCIT’s revisionary order, but unverified CSR and TDS interest claims stand remanded. Consequential verification by AO infirms PCIT’s revisionary order, but unverified CSR and TDS interest claims stand remanded. Issue Whether the Principal Commissioner of Income-tax (PCIT) was legally justified in invoking revisionary jurisdiction under section 263 on the grounds… Read More »
Corporate guarantee fees at 1% upheld; bad debts actual write-off and lease rentals allowed as revenue expense. Issue Whether the TPO was justified in benchmarking a free corporate guarantee given to an overseas AE at an ALP of 1%, and whether the AO erred in disallowing an actual bad debt write-off and the principal component… Read More »
TPO cannot arbitrarily value management fees at ‘Nil’ or treat interest on receivables as a standalone transaction. Issue Whether the Transfer Pricing Officer (TPO) was legally justified in reducing the Arm’s Length Price (ALP) of management fees and royalty payments to ‘Nil’, making a separate adjustment for interest on outstanding receivables, and disallowing late employee… Read More »
Assessee blocks uncorroborated search additions, but stock deficits and unproven HUF rents stand. Issue Whether search-and-seizure-based additions concerning alleged on-money payments, unrecorded loose-paper transactions, protective gross profit adjustments, stock deficiencies, unaccounted purchases/sales, and unverified rental income claims are legally sustainable under the provisions of the Income-tax Act? Facts On-money & Third-Party Sheets (I & II):… Read More »