Deduction in Respect of Royalty on Patents [Section 80RRB] • A resident individual, being a patentee, can claim deduction for royalty income received in respect of patents registered on or after 01-04-2003 under the Patents Act, 1970. • Royalty means consideration (including lump sum consideration) for: Transfer or granting of a licence of patent rights;… Read More »
Bar on Reopening Time-Barred Assessments: The Supremacy of the First Proviso to Section 149 Facts The Notice: The Revenue issued a reassessment notice under Section 148 in the year 2024 for Assessment Year 2013-14. The Regime Change: The notice was issued under the “New Reassessment Regime” introduced by the Finance Act, 2021, which theoretically allows… Read More »
Assessment on Non-Existent Entity Post-Amalgamation is Void Ab Initio Facts The Entities: The assessee-company (RIL) and two other entities, RRPPL and RRPPPL, originally filed their respective income tax returns for AYs 1993-94 to 1995-96. The Amalgamation: Subsequently, RRPPL and RRPPPL were amalgamated with RIL. As a result of this merger, the two companies ceased to… Read More »
Deduction in Respect of Royalty Income [Section 80QQB] • A resident individual author (including joint authors) can claim deduction for deriving income by: Lump-sum consideration for the assignment or grant of his copyright interest in any book; Royalty or copyright fees for such book; Non-refundable advance payment of royalties/copyright fees. • Deduction is allowed for… Read More »
Quashing Reassessment Based on Third-Party Seized Material Without Nexus Facts The Transaction: The Petitioner (Assessee) had sold a parcel of agricultural land (Survey No. 614 at Village Godhavi) via a registered sale deed on 10.10.2018. The Search: On 28.09.2021, a search was conducted by the Department on a third party, during which a “loose paper”… Read More »
Deduction in Respect of Income of Co-operative Societies [Section 80P] • Every co-operative society is eligible to claim deduction under this section except: Co-operative banks (other than primary agricultural credit societies or primary co-operative agricultural and rural development banks) Regional rural banks • Amount of deduction to a co-operative society engaged in specified activities: A co-operative society… Read More »
Condonation of Delay in Filing Form 10B: Substance Over Form for Charitable Trusts Facts The Assessee: A charitable trust dedicated to providing medical aid to the underprivileged. The Lapse: The trust failed to file its mandatory audit report in Form 10B within the prescribed timeline for AY 2016-17, resulting in a delay of 687 days.… Read More »
Deduction for Inter-Corporate Dividend [Section 80M] • A domestic company is eligible to claim deduction for dividend income received from another domestic company, a foreign company, or a business trust. • Deduction is allowed when the domestic company further distributes the dividend to its shareholders on or before one month prior to the due date… Read More »
Deductibility of Interest Earned on Surplus Funds by Co-operative Credit Societies Facts The Assessee: A co-operative credit society primarily engaged in the business of providing credit facilities to its members. The Dispute: For the Assessment Years 2014-15, 2018-19, and 2020-21, the society claimed a deduction under Section 80P(2)(a)(i) on interest income earned from surplus funds… Read More »
Deduction to Offshore Banking Units and International Financial Services Centres (IFSC) [Section 80LA] • Eligible assessee – The following person can claim deduction under this section: Scheduled banks having offshore banking units in a SEZ. A bank incorporated by or under laws outside India with offshore banking units in a SEZ. Units of International Financial… Read More »