SECTION 148 NOTICE AFTER 3 YEARS INVALID WITHOUT SANCTION FROM PRINCIPAL CHIEF COMMISSIONER   ISSUEWhether a reassessment notice issued under Section 148 after the expiry of three years from the end of the relevant assessment year is valid if the sanction under Section 151 was obtained from the Principal Commissioner (PCIT) instead of the Principal… Read More »

SECTION 68 ADDITION: ADMISSION OF NOTICES PRECLUDES “NATURAL JUSTICE” DEFENSE   ISSUE Whether an assessment order treating land advances as unexplained cash credit under Section 68 can be challenged on the ground of violation of principles of natural justice, when the assessee admittedly received multiple show-cause notices but failed to furnish complete details (PAN, creditworthiness)… Read More »

SECTION 54F DEDUCTION CLAIM REMANDED: JOINT OWNERSHIP WITH SPOUSE & STAMP DUTY VALUE DISCREPANCY   ISSUE Whether the Assessing Officer was justified in disallowing the deduction under Section 54F (Capital Gains exemption) by making an addition based on the difference between the ready reckoner value and stamp duty paid for the new asset, and ignoring… Read More »

SECTION 263 REVISION: PCIT CAN REVISE REASSESSMENT ORDERS INDEPENDENTLY   ISSUE Whether the Principal Commissioner of Income Tax (PCIT) has the jurisdiction under Section 263 to revise a reassessment order passed under Section 147, treating it as a separate and distinct order from the original assessment order, especially regarding issues not touched upon in the… Read More »

SECTION 80-IB(9): EACH OIL WELL TREATED AS A SEPARATE UNDERTAKING   ISSUE Whether each oil well operated by an assessee engaged in oil exploration under a Production Sharing Contract (PSC) constitutes a separate “undertaking” eligible for deduction under Section 80-IB(9), or if all wells under a single contract must be aggregated as one undertaking. FACTS… Read More »

SECTION 80-IB DEDUCTION ON INTER-UNIT TRANSFER OF CHILLED MILK   ISSUE Whether the profits derived by a dairy company’s eligible chilling units from the inter-unit transfer of chilled milk to its processing units must be computed at Market Value (as per Section 80-IA(8)) or at Cost (as proposed by the TPO), and whether such profits… Read More »

TRANSFER PRICING: FUNCTIONAL DISSIMILARITY IN SOFTWARE SERVICES (SECTION 92C)   ISSUE Whether a company engaged in high-end global business consulting and diversified IT services solutions can be selected as a valid comparable for determining the Arm’s Length Price (ALP) of an assessee engaged purely in software development services. FACTS Assessment Year: 2017-18. Assessee’s Profile: The… Read More »

SECTION 80JJAA: ENTIRE CLAIM CANNOT BE REJECTED IF ONLY SOME EMPLOYEES FAIL THE 240-DAY TEST SUITABLE TITLE Deduction under Section 80JJAA Remanded for Employee-Wise Verification of 240-Day Tenure ISSUE Whether the Assessing Officer was justified in rejecting the entire claim for deduction under Section 80JJAA solely because “most” of the new employees had worked for… Read More »

JDA DOES NOT AUTOMATICALLY CONVERT LAND TO STOCK-IN-TRADE; RECEIPTS TREATED AS ADVANCES   ISSUE Whether the Assessing Officer was justified in treating a landowner’s share of revenue from a Joint Development Agreement (JDA) as “Business Income” by characterizing the land as stock-in-trade, and taxing the receipts in the year of receipt, contrary to the claim… Read More »