TDS on Immovable Property: Liability Arises on Total Consideration, Regardless of Payment Status Facts The Transaction: During AY 2018-19, the assessee purchased land for a total consideration of ₹4.81 crores. The Default: The assessee deducted TDS (under Section 194-IA) at 1% only on ₹1.43 crores, leaving a balance of ₹3.38 crores without tax deduction. Assessee’s… Read More »

Merger of Original Assessment into Search Assessment: Original Disallowances Become Inoperative Facts Original Assessment: For AY 2006-07, an assessment was completed under Section 143(3), where the Assessing Officer (AO) disallowed a claim for short-term capital loss. Search Proceedings: Subsequently, a search was conducted on the assessee’s premises, triggering the block assessment regime under Section 153A.… Read More »

Benchmarking Interest on AE Loans: Consistency and Credit for Suo Motu Income Facts The Transaction: The assessee, a power generation company, advanced loans to its Associated Enterprise (AE). Assessee’s Benchmarking: The company offered interest income based on LIBOR plus a spread, which it reported suo motu in its return of income. The Dispute: The Transfer… Read More »

Rejection of Books Prior to DVO Reference: Validity of Section 69B Addition Facts The Dispute: The Assessing Officer (AO) made an addition to the assessee’s income under Section 69B representing the difference between the cost of construction reported by the assessee and the valuation estimated by the District Valuation Officer (DVO). Assessee’s Challenge: The assessee… Read More »