Commission Payments to Non-Resident Agents Not Taxable in India, No Disallowance Under Section 14A for Absence of Exempt Income, and CSR Expenses Disallowance Upheld. Issue: Whether commission payments made to non-resident agents for services rendered outside India are chargeable to tax in India, thereby requiring TDS deduction by the assessee. Whether disallowance under section 14A… Read More »
I. Cost of Acquisition Based on Books Post-Amalgamation to Be Considered for Capital Gains. Issue: Whether the cost of acquisition of land and building for computing capital gains should be the value recorded in the books of the assessee-company after amalgamation, or the significantly lower value recorded by the transferor company before a slump sale,… Read More »
Section 54F Exemption Allowed on Purchase Agreement with Possession. Issue: Whether the exemption under Section 54F of the Income-tax Act, 1961, for investment in a residential house is available to an assessee who has entered into a purchase agreement with possession within the stipulated time, even if a registered sale deed is not executed. Facts:… Read More »
Addition under Section 56(2)(x) Deleted Due to Immaterial Difference in Value. Issue: Whether an addition under Section 56(2)(x) of the Income-tax Act, 1961, is sustainable when the difference between the stamp duty value and the purchase consideration of land is approximately 10% of the purchase consideration. Facts: The assessee purchased a parcel of land along… Read More »
Matter Remanded to Determine if Bike Won Through Scratch Card Constitutes a Gift or Lottery Winnings. Issue: Whether a bike won through a scratch card should be treated as a gift under Section 56 of the Income-tax Act, 1961, or as lottery winnings taxable at a higher rate under Section 115BB. Facts: The assessee won… Read More »
I. Addition on Share Premium Deleted as Assessee Provided Necessary Documents. Issue: Whether an addition under Section 68 on account of share premium is justified when the assessee has furnished all relevant documents, including a valuation certificate as per Rule 11UA(2)(b), to prove the identity and creditworthiness of investors and the genuineness of the transaction,… Read More »
Reopening Notice Invalid Due to Change of Opinion and Revenue’s Appeal Dismissed for Delay and Lack of Merit. Issue: Whether the reopening of an assessment under Section 148 is valid when it is based on a change of opinion regarding facts already considered during a scrutiny assessment under Section 143(3). Facts: The assessee filed its… Read More »
Reassessment Notices Quashed Due to Incorrect Assumptions Regarding Unexplained Investments. Issue: Whether the reopening of an assessment under Section 148 is valid when it is based on incorrect assumptions and there is no discernible link between the assessee’s disclosed transactions and the alleged sham transactions that triggered the reopening. Facts: The assessee filed a return… Read More »
I. Short Charging of Rent to Trustee Does Not Warrant Denial of Entire Section 11 Exemption. Issue 1: When a charitable trust provides residential accommodation to its trustee at a concessional rent, and the Assessing Officer deems the fair rent to be higher, can the entire exemption claimed by the trust under Section 11 of… Read More »
Reopening Beyond Four Years Invalid Without Failure to Disclose Material Facts in Original Scrutiny Assessment. Issue: Can a reassessment under Section 148 of the Income-tax Act, 1961, be initiated beyond four years from the end of the relevant assessment year based on information regarding significant bank deposits and cash withdrawals, when the original assessment was… Read More »