A taxpayer’s hearing request extends the time limit for a Section 148A(d) order. Issue Is an order passed under Section 148A(d) of the Income-tax Act, 1961, barred by limitation if it is passed more than one month after the assessee’s reply was received, specifically when the assessee themselves had requested a personal hearing? Facts The… Read More »
A delay in Form 10B verification was condoned due to an accountant’s error. Issue Should a significant delay in the e-verification of an audit report in Form 10B be condoned if the audit itself was completed on time and the delay was due to an inadvertent error by the taxpayer’s accountant? Facts An assessee, a… Read More »
An AO cannot change the share valuation method chosen by an assessee. Issue Does an Assessing Officer (AO) have the authority to discard the valuation method chosen by a taxpayer for its shares—as permitted under the law—and substitute it with another method, simply because the AO disagrees with the projections used in the original valuation?… Read More »
The 10% tolerance band in Section 43CA applies retrospectively. Issue Is the amendment to Section 43CA of the Income-tax Act, 1961, which increased the permissible tolerance limit (safe harbour) between the stamp duty value and the sale consideration from 5% to 10%, applicable retrospectively to past assessment years? Facts An assessee sold three immovable properties… Read More »
The increased 10% safe harbour limit for the difference between the stamp duty value and the actual consideration of a property is curative and applies retrospectively. Issue Is the amendment to Section 56(2)(x) of the Income-tax Act, 1961, which increased the permissible tolerance limit between the stamp duty value and the sale consideration from 5%… Read More »
An appellate authority cannot direct an Assessing Officer to reopen an assessment for a past year if, on the date the direction is given, that past year was already barred by the normal statute of limitations for reopening. Issue Does the power of an Assessing Officer to reopen an assessment for any past year, based… Read More »
An unrealized gain from the year-end valuation of open share trading positions is not taxable income. Issue Can a notional, unrealized gain, which arises from the mark-to-market (MTM) valuation of unsold or unsettled share trading positions at the end of the financial year, be treated as the taxable income of the assessee for that year?… Read More »
A TP adjustment is invalid if the TPO fails to find defects in the assessee’s study. Issue Can a Transfer Pricing Officer (TPO) make an adjustment by comparing the margins of a company’s tax-holiday units with its non-tax holiday units, if the TPO has not first identified and recorded specific defects in the taxpayer’s own… Read More »
A non-speculative business loss can be set off against capital gains income. Issue Can a business loss, specifically a non-speculative loss arising from trading in futures and options (F&O), be legally set off against income earned under the head “Capital Gains” under the provisions of the Income-tax Act, 1961? Facts For the Assessment Year 2009-10,… Read More »
A deduction was allowed based on the rule of consistency. Issue Can an Assessing Officer (AO) deny a tax deduction on a recurring issue that has already been settled in the taxpayer’s favour by the Income Tax Appellate Tribunal (ITAT) in a prior year, solely on the grounds that the revenue department has filed an… Read More »