Tag Archives: ACIT

Assessee’s contractual sharing of forex gains is non-taxable rebate and ad-hoc expenditure disallowances are reduced.

By | September 22, 2026
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Assessee’s contractual sharing of forex gains is non-taxable rebate and ad-hoc expenditure disallowances are reduced. Issue Whether foreign exchange fluctuation gains passed on to an overseas buyer under a contractual agreement qualify as an allowable business deduction/rebate under Section 37(1) of the Income-tax Act, 1961 (Section 34 of the Income-tax Act, 2025), and whether ad-hoc… Read More »

Deduction claimed under Sections 80-IA/80-IB is not to be subtracted from business profits while computing Section 80HHC deduction.

By | September 21, 2026
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Deduction claimed under Sections 80-IA/80-IB is not to be subtracted from business profits while computing Section 80HHC deduction. Issue Whether deductions allowed under Sections 80-IA/80-IB must be subtracted from business profits before computing deductions under Section 80HHC, and whether a late-crystallized capital liability can be added to the actual cost under Section 43(1) without identifying… Read More »

Estimated Gross Profit Additions From Stock Shortages Do Not Attract Penalty Under Section 271AAB

By | September 19, 2026
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Estimated Gross Profit Additions From Stock Shortages Do Not Attract Penalty Under Section 271AAB Issue Whether an estimated addition to gross profit, computed by applying a profit rate to an inferred stock shortage found during a search, constitutes “undisclosed income” under the Explanation to Section 271AAB to justify levying a penalty. Facts Assessee & Search… Read More »

Assessee Entitled to Section 244A Interest and Additional Interest as Claim Denial Without Delay Is Unlawful

By | September 19, 2026
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Assessee Entitled to Section 244A Interest and Additional Interest as Claim Denial Without Delay Is Unlawful Issue Whether Section 244A(2) empowers tax authorities to deny interest on a refund merely because the successful claim was raised during assessment rather than in the original return. Whether the assessee is entitled to additional interest at 3% per… Read More »

Section 14A disallowance applies only to exempt-income-yielding investments, and duplicate additions are impermissible.

By | September 19, 2026
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Section 14A disallowance applies only to exempt-income-yielding investments, and duplicate additions are impermissible. Section 14A disallowance applies only to exempt-income-yielding investments, and duplicate additions are impermissible. Issue Whether disallowance under Section 14A read with Rule 8D is to be computed considering only investments that yielded exempt income during the year. Whether an addition made under… Read More »

Tax Demands Unclaimed in Approved Resolution Plan Stand Extinguished and Reassessment Order Becomes Non-Operational

By | September 18, 2026
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Tax Demands Unclaimed in Approved Resolution Plan Stand Extinguished and Reassessment Order Becomes Non-Operational Tax Demands Unclaimed in Approved Resolution Plan Stand Extinguished and Reassessment Order Becomes Non-Operational Issue Whether tax reassessment proceedings initiated under Section 147 and consequential tax demands raised under Section 68 read with Section 115BBE for a period prior to the… Read More »

Disallowance of Interest and Cash Credit Addition on Partners’ Capital Held Unsustainable Due to Sufficient Interest-Free Funds and Accounting Misconception

By | September 17, 2026
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Disallowance of Interest and Cash Credit Addition on Partners’ Capital Held Unsustainable Due to Sufficient Interest-Free Funds and Accounting Misconception Issue Whether a disallowance under section 36(1)(iii) for notional interest on interest-free advances is sustainable when the assessee’s non-interest-bearing funds significantly exceed the advances, and the Assessing Officer fails to establish a direct nexus with… Read More »

Addition under Section 69A for repaid prior-year loan routed through banking channels is unsustainable.

By | September 9, 2026
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Addition under Section 69A for repaid prior-year loan routed through banking channels is unsustainable. Addition under Section 69A for repaid prior-year loan routed through banking channels is unsustainable. Issue Whether an addition under Section 69A can be sustained as unexplained money on account of alleged bogus accommodation entries when the loan was actually received in… Read More »

Reinsurance Cession Disallowance Deleted and 60% Depreciation Allowed on Independent Business Computer Software

By | September 5, 2026
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Reinsurance Cession Disallowance Deleted and 60% Depreciation Allowed on Independent Business Computer Software Issue Whether an Assessing Officer can disallow reinsurance premiums exceeding regulatory limits when IRDAI raises no objection, and whether standalone business software qualifies for depreciation under the higher rate for “Computers including Computer Software”. Facts Reinsurance Premium Disallowance: The assessee, a general… Read More »

Reassessment proceedings initiated after April 1, 2021 for AY 2015-16 are barred by limitation.

By | September 4, 2026
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Reassessment proceedings initiated after April 1, 2021 for AY 2015-16 are barred by limitation. Reassessment proceedings initiated after April 1, 2021 for AY 2015-16 are barred by limitation. Issue Whether reassessment proceedings initiated after April 1, 2021, for Assessment Year 2015-16—including notices issued under Section 148 and Section 148A(b) along with the consequential order—are barred… Read More »