Tag Archives: Additional Commissioner of Income -tax

Omission of Section 92BA(i) Is Prospective, Comparables Require Functional Similarity, and Feasibility Costs Are Revenue Expenditure

By | October 6, 2026
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Omission of Section 92BA(i) Is Prospective, Comparables Require Functional Similarity, and Feasibility Costs Are Revenue Expenditure Issue Whether the omission of Section 92BA(i) by the Finance Act, 2017 applies retrospectively, whether loss-making or functionally different companies can be benchmarked as comparables, and whether preliminary expenses incurred for an abandoned business project are allowable as revenue… Read More »

Notional rent cannot be taxed under Other Sources without evidence, and disallowances must be restricted or deleted.

By | August 31, 2026
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Notional rent cannot be taxed under Other Sources without evidence, and disallowances must be restricted or deleted. Issue Whether notional rent from a sister concern can be taxed under “Income from Other Sources” without evidence of actual receipt or entitlement. Whether building expenses attributable to a sister concern can be disallowed when income is assessable… Read More »

Interest-Free Loans to AE Attract Transfer Pricing Adjustments While Ongoing Marketing Costs Remain Revenue Expenditure

By | August 18, 2026
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Interest-Free Loans to AE Attract Transfer Pricing Adjustments While Ongoing Marketing Costs Remain Revenue Expenditure Interest-Free Loans to AE Attract Transfer Pricing Adjustments While Ongoing Marketing Costs Remain Revenue Expenditure Issue Whether advancing interest-free funds to an Associated Enterprise (AE) constitutes an international transaction requiring transfer pricing benchmarking, irrespective of the availability of interest-free own… Read More »

Delay in penalty show-cause notice and non-deduction on Section 69C disallowances invalidates Section 271C penalty.

By | August 3, 2026
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Delay in penalty show-cause notice and non-deduction on Section 69C disallowances invalidates Section 271C penalty. Issue Whether an inordinate, unexplained delay of 18 months by the competent authority in issuing a first show-cause notice after receiving a reference renders the penalty order under Section 271C unsustainable. Whether penalty under Section 271C for non-deduction of TDS… Read More »

Non-resident bank wins on inter-branch transactions, interest, exemptions, and key business expense deductions.

By | July 6, 2026
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Non-resident bank wins on inter-branch transactions, interest, exemptions, and key business expense deductions. Issue Whether various additions and disallowances made by the Assessing Officer concerning inter-branch transactions, overseas third-party bank interest, expense allocations ($§14\text{A}$), write-backs, broken period interest, club fees, interest on processing refunds ($§234\text{B}$), year-end forex revaluations, and CRR/SLR shortfalls are legally sustainable under… Read More »

Section 153A Return Substitutes Section 139 Return, Negating Penalty Under Black Money Act for Omissions in Original Filing

By | June 12, 2026
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Section 153A Return Substitutes Section 139 Return, Negating Penalty Under Black Money Act for Omissions in Original Filing Issue Whether a penalty under Section 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 can be levied for failing to report foreign assets in the original Schedule FA of… Read More »