Cost of acquisition includes builder charges; Solar panels are improvement cost, but ACs/travel expenses disallowed Case I: Cost of Acquisition (Civil/Electrical Charges paid to Builder) Issue Whether “other charges” paid to a builder for civil, plumbing, and electrical works can be disallowed from the Cost of Acquisition due to a lack of specific bank statements/vouchers,… Read More »

Bonus paid before ITR deadline deductible despite unpaid status in Tax Audit; Double addition in 143(1) deleted Case I: Section 43B Disallowance (Bonus) Issue Whether the disallowance of bonus payable to employees under Section 43B is sustainable when the amount was unpaid on the date of the Tax Audit Report but was actually paid before… Read More »

Remand granted for 12AB registration and 80G approval due to missed notice and condonable delay Issue Section 12AB Registration: Whether the rejection of a registration application is valid when the assessee complied with the initial notice but missed the subsequent one due to inadvertence. Section 80G Approval: Whether the delay in filing Form 10AB should… Read More »

Withdrawal of 10(23C) approval quashed; exemption denial limited to specific violations, not entire entity Issue Whether the Commissioner (Exemptions) is justified in withdrawing the entire approval granted under Section 10(23C)(vi) to an educational society based on allegations of applying income for the personal benefit of trustees (rent, travel, etc.), or if the denial of exemption… Read More »

Excise duty waiver excluded from Transfer Pricing PLI; Backward area subsidy held as Capital Receipt Case I: Transfer Pricing – Computation of Operating Margins Issue Whether excise duty and sales tax/CST should be excluded from the computation of Operating Profit/Operating Revenue for Transfer Pricing benchmarking, particularly when the assessee enjoys a waiver of these duties… Read More »

Verification of agricultural status and source of deposits essential before confirming additions under Section 50C and 69A Case I: Capital Gains on Agricultural Land Issue Whether the provisions of Section 50C (adopting stamp duty value) are applicable to the sale of land claimed to be agricultural land situated outside municipal limits, which is excluded from… Read More »

IMPORTANT INCOME TAX UPDATE 05.12.2025 Section Case Law Title Brief Summary Citation Relevant Act 4 Maruti Suzuki India Ltd. v. DCIT Sales tax incentives/subsidies received under a State scheme are treated as capital receipts, not taxable as revenue receipts under Section 28(iv). Click Here Income-tax Act, 1961 9 Maruti Suzuki India Ltd. v. DCIT Payments… Read More »