Section 153A Assessment is Invalid Without a Search Warrant or Panchnama in the Assessee’s Name Issue Whether the Assessing Officer is legally justified in assuming jurisdiction and framing an assessment under Section 153A against an individual when the underlying search action under Section 132 was not validly initiated in that specific individual’s name. Facts The… Read More »
Pure Equity Debentures Excluded from MAT Transition Amount; Section 14A Disallowance Fails Without Recorded Dissatisfaction Pure Equity Debentures Excluded from MAT Transition Amount; Section 14A Disallowance Fails Without Recorded Dissatisfaction Issue Whether Fully Convertible Debentures (FCDs/ZOFCDs) consisting purely of equity components can be categorized as Compound Financial Instruments (CFIs) or “other equity” to trigger a… Read More »
Additional Evidence on Transfer Pricing and Enhanced Gross Income Merit Re-evaluation of Deductions Additional Evidence on Transfer Pricing and Enhanced Gross Income Merit Re-evaluation of Deductions Issue Whether a Transfer Pricing Officer (TPO) can sustain an Arm’s Length Price (ALP) of “Nil” for IT services once the assessee submits fresh, comprehensive cost allocation and service… Read More »
Income from Joint Development Agreement Treated as Stock-In-Trade Remanded for Factual Re-Adjudication Issue Whether the revenue authorities were justified in taxing Rs. 14.33 crores as accrued business income based on a JDA and a Form 26AS entry, and whether capital gains provisions under Section 45(5A) apply when the underlying immovable property is admittedly held as… Read More »
Transfer pricing adjustments, historical royalty, straight-line lease rents, and block depreciation are allowed; warranty provision is remanded. Issue Whether the revenue authorities are legally justified in: Determinining the Arm’s Length Price (ALP) of intra-group technical services and royalty as “nil” despite documented commercial benefits. Capitalizing recurring royalty expenses that were treated as revenue expenditures in… Read More »
Royalty and straight-line lease rent are allowed, while the warranty provision is remanded for scientific verification. Issue Whether the tax authorities can determine the Arm’s Length Price (ALP) of intra-group technical services at nil despite documented commercial benefits, treat historically allowed monthly royalty payments as capital expenses, disallow Accounting Standard-19 straight-line lease rents as notional,… Read More »
Estimated circular trading commission is sustained, demonetization deposits are deleted, and standard business tax rates apply. Estimated circular trading commission is sustained, demonetization deposits are deleted, and standard business tax rates apply. Issue Whether estimated commission additions on circular trading are sustainable without adjustments, whether demonetization cash deposits backed by documented prior withdrawals can be… Read More »
Trust registration cannot be cancelled for financial irregularities without deviation from core charitable objects. Issue Whether the PCIT can legally cancel a trust’s tax registration under Section 12AB(4) by invoking clauses (a) and (e) of the Explanation for financial irregularities/related-party benefits under Section 13(3), when the trust continues its genuine charitable activity of imparting education… Read More »
Reassessment notice is quashed where reasons fail to establish a rational nexus with income escapement. Reassessment notice is quashed where reasons fail to establish a rational nexus with income escapement. Issue Whether a reassessment notice issued under Section 148 is legally sustainable when the Assessing Officer relies entirely on general penny-stock information from the Investigation… Read More »
Telecom rulings favor assessee on TP adjustments, spectrum depreciation, and distributor discounts. Issue Whether Transfer Pricing (TP) adjustments are sustainable when based on controlled comparables, lack adjustments for economic risks, or treat business-linked Advertisement, Marketing, and Promotion (AMP) expenses as a separate brand-promotion transaction. Whether a telecom operator can claim depreciation on 3G spectrum rights,… Read More »