Commissioner cannot ignore Binding High Court Precedent citing Pendency of Appeal at Supreme Court Issue Whether the Commissioner, while exercising revisionary powers under Section 264, can refuse to follow a binding decision of the Jurisdictional High Court merely on the ground that the Department has appealed against that decision and the matter is pending before… Read More »

AMP Expenses & Distributor Commissions in MLM not an “International Transaction” Issue Whether Advertising, Marketing, and Promotion (AMP) expenses, specifically commissions paid to distributors by a Multi-Level Marketing (MLM) company, constitute an “international transaction” requiring Transfer Pricing adjustments. Facts Assessee: A manufacturer selling consumer products through direct selling (MLM). The Adjustment: The Transfer Pricing Officer… Read More »

I. Re-deposit of Cash Withdrawn for Salaries during Demonetization Accepted; Addition Deleted Issue Whether cash deposited in Specified Bank Notes (SBNs) during the demonetization period can be treated as unexplained cash credit under Section 68 when the assessee claims it was the re-deposit of cash previously withdrawn for salaries but not utilized due to a… Read More »

Sale of Land Taxed as Capital Gains; Gram Panchayat Certificate Insufficient to Prove Distance from Municipality Issue Whether a certificate issued by a Gram Panchayat is sufficient evidence to prove that agricultural land is situated beyond 8 kms from municipal limits (and thus exempt from Capital Gains Tax), or if a certificate from a competent… Read More »

Reassessment Quashed for “Borrowed Satisfaction”; AO failed to verify Accommodation Entry allegations independently Issue Whether a reassessment notice issued under Section 148 is valid if the reasons recorded by the Assessing Officer (AO) are mere reproductions of a general report from the Investigation Wing (DIT) without any independent application of mind or specific verification of… Read More »

DPIIT Startup Immunity for “Angel Tax” does not bar Section 68 Probe; Addition Deleted on Merits Issue Whether a DPIIT-registered start-up is automatically immune from additions under Section 68 (unexplained cash credit) regarding share premium, merely because it enjoys immunity from Section 56(2)(viib) (Angel Tax). Whether the addition of the entire share premium as “unexplained… Read More »

Addition Deleted: Unsigned Draft Agreement found on Third Party’s Hard Disk has no Evidentiary Value Issue Whether an addition for unexplained expenditure (alleged cash payment for property) under Section 69C can be sustained based solely on an unsigned and undated draft agreement found on the hard disk of a third party (a deed writer) during… Read More »

Excel Sheets from Third Party & Retracted Statements insufficient for Addition; “Dumb Documents” rejected Issue Whether an addition for unexplained expenditure (cash payment for land) under Section 69A/69B can be sustained based solely on Excel sheets found on a third party’s laptop and statements that were subsequently retracted, without any independent corroborative evidence. Facts The… Read More »