Employee benefit expenses and coupon interest on Indian currency NCDs are fully allowable. Issue Issue I (Section 37): Whether the Assessing Officer can disallow an increase in genuine employee benefit expenses simply because the company’s operational revenue declined during the year. Issue II (Section 92C): Whether Prime Lending Rate (PLR) or External Benchmark-based Lending Rate… Read More »
Compensatory interest, zero-exempt-income Section 14A disallowance, 80G CSR deductions, and workforce depreciation are allowed. Issue Whether interest paid on a delayed license migration fee is a deductible revenue expenditure. Whether a disallowance under Section 14A can be made when the assessee earns no exempt income during the year. Whether corporate social responsibility (CSR) expenditure paid… Read More »
Disallowance under Section 36(1)(iii) must reflect actual interest paid, while verified loans defeat Section 68 additions. Issue Whether the lower authorities were justified in making a massive interest disallowance under Section 36(1)(iii) without correlating the disallowance to the actual interest expenditure incurred on loans diverted for interest-free advances. Whether an addition under Section 68 for… Read More »
DTAA Rates Do Not Apply to Dividend Distribution Tax, and Discount on ESOP is Allowed as Business Expenditure Issue Whether Double Taxation Avoidance Agreement (DTAA) provisions are triggered when a domestic company pays Dividend Distribution Tax (DDT) under Section 115-O, thereby allowing a refund of DDT paid in excess of DTAA rates. Whether the discount… Read More »
A bona fide claim on a complex, nascent legal issue like POEM does not justify a penalty for misreporting. Issue Whether a penalty for “misreporting of income” under Section 270A(9)(a) can be mechanically levied at 200% when an assessee makes a bona fide, legally plausible claim in a revised return based on a complex and… Read More »
F. No. A 32013/02/2016-Ad.VI Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North Block, New Delhi, 110001 Date: 22.07.2016 Order No. 138 of 2016 The President is pleased to appoint the following Income Tax Officers, presently posted in the region shown against their names in the grade of Assistant… Read More »