Tag Archives: ACIT

Immunity Under Section 270AA Requires Reconsideration Where Rectification Order Erased Tax Demand and Created Refund

By | August 7, 2026
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Immunity Under Section 270AA Requires Reconsideration Where Rectification Order Erased Tax Demand and Created Refund Issue Whether an Assessing Officer can reject an application for immunity from penalty under Section 270AA on the ground of non-payment of original tax demand when a subsequent rectification order under Section 154 completely eliminated the demand, resulted in a… Read More »

PF/ESI delays due to COVID-19 and flash-flood asset losses are allowable, while TDS delay interest is penal.

By | August 7, 2026
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PF/ESI delays due to COVID-19 and flash-flood asset losses are allowable, while TDS delay interest is penal. Issue Whether delay in remitting employees’ PF/ESI contributions due to COVID-19 lockdown restrictions warrants disallowance under Section 36(1)(va). Whether interest paid on late remittance of Tax Deducted at Source (TDS) is compensatory in nature and allowable as a… Read More »

Disallowance for non-deduction of TDS on non-resident payments is restricted to 30% under DTAA non-discrimination clause

By | August 7, 2026
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Disallowance for non-deduction of TDS on non-resident payments is restricted to 30% under DTAA non-discrimination clause Disallowance for non-deduction of TDS on non-resident payments is restricted to 30% under DTAA non-discrimination clause Issue Whether disallowance under Section 40(a)(i) for payments made to non-residents without TDS should be restricted to 30% (at par with resident payments… Read More »

Depreciation on full cost of IPL franchise allowed, cash disallowance upheld, unproven expenses disallowed, and specific reimbursements remanded.

By | August 7, 2026
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Depreciation on full cost of IPL franchise allowed, cash disallowance upheld, unproven expenses disallowed, and specific reimbursements remanded. Depreciation on full cost of IPL franchise allowed, cash disallowance upheld, unproven expenses disallowed, and specific reimbursements remanded. Issue Whether an IPL franchise owner is entitled to depreciation on the full capitalized cost of franchise rights, whether… Read More »

Addition under section 69A for locker cash is unsustainable when supported by satisfactory explanations and evidence.

By | August 6, 2026
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Addition under section 69A for locker cash is unsustainable when supported by satisfactory explanations and evidence. Issue Whether cash of ₹7 lakhs found in a bank locker can be added as unexplained money under section 69A when the assessee provides plausible explanations supported by corroborative documentary evidence and the Revenue fails to bring rebutting material.… Read More »

Disallowance under section 40(a)(ia) and 40(a)(i) is unsustainable as TDS provisions were not applicable.

By | August 6, 2026
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Disallowance under section 40(a)(ia) and 40(a)(i) is unsustainable as TDS provisions were not applicable. Issue Whether section 40(a)(ia) can be invoked for player winnings payouts that were never claimed as deductible expenditure in the Profit and Loss account, and whether the ₹10,000 threshold under section 194B applies per individual payment rather than aggregate wallet balance.… Read More »

Bank cannot be treated as assessee in default for non-deduction of TDS on foreign LTC covered by High Court interim order.

By | August 3, 2026
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Bank cannot be treated as assessee in default for non-deduction of TDS on foreign LTC covered by High Court interim order. Issue Whether an assessee-bank can be treated as an “assessee in default” under Section 201 for not deducting tax at source (TDS) under Section 192 on Leave Travel Concession (LTC) reimbursements involving foreign travel,… Read More »

Clerical errors in Section 153D approval and unproven search cash do not invalidate assessment.

By | August 3, 2026
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Clerical errors in Section 153D approval and unproven search cash do not invalidate assessment. Issue Section 153D Approval Validity: Whether clerical defects, missing DIN, or advisory notes in a Section 153D approval letter invalidate the search assessment, and whether changing the addition section from 69 to 69A by CIT(A) violates natural justice. Unexplained Cash (Section… Read More »

Company Performing Broader Auto Component Functions Qualifies as Comparable and Brought Forward Losses Must Be Set Off

By | August 1, 2026
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Company Performing Broader Auto Component Functions Qualifies as Comparable and Brought Forward Losses Must Be Set Off Issue Whether a company manufacturing core auto components, compressors, and filters qualifies as a valid functional comparable under TNMM, and whether the Assessing Officer must grant set-off of brought forward business losses omitted in the final tax computation… Read More »

ITAT Rules Indian PE Interest Income, Shared Hub Costs, and MTM Losses Non-Taxable or Deductible

By | August 1, 2026
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ITAT Rules Indian PE Interest Income, Shared Hub Costs, and MTM Losses Non-Taxable or Deductible ITAT Rules Indian PE Interest Income, Shared Hub Costs, and MTM Losses Non-Taxable or Deductible Issue Whether interest credited by Head Office, shared regional hub expenses, broken period interest, expatriate salary reimbursements, year-end Mark-to-Market (MTM) losses on forex contracts, and… Read More »