Best Judgment Assessment Passed Without Hearing or Responding to Adjournment Request Set Aside Issue Whether a best judgment assessment order passed under Section 144 read with Section 144B of the Income-tax Act, 1961 is legally sustainable when the Assessing Officer (AO) provided an inadequate reply window, failed to respond to an adjournment request, and issued… Read More »
Addition of capital gains based on Form 26AS TDS is unsustainable when subsequent receipts are declared in respective returns. Issue Whether the Assessing Officer was justified in making an addition of ₹2.45 crores to the capital gains for Assessment Year 2018-19 based on the TDS amount reflected in Form 26AS, despite the assessee actually receiving… Read More »
Transfer Pricing Adjustment on CCD Interest Deleted and Section 94B Interest Computation Restored Issue Whether the TPO can recharacterize Compulsorily Convertible Debentures (CCDs) as equity and reduce the arm’s length price (ALP) of interest to nil under Section 92C. Whether interest expense on CCDs can be disallowed under Section 36(1)(iii) or Section 37(1) without factual… Read More »
Penalty Under Section 270A Is Valid for Non-Filing Under Section 139(1) Even if Returned Income Is Accepted Post-Notice Under Section 148 Issue Whether penalty under Section 270A(2)(b) for under-reporting of income is leviable where an assessee fails to file a return of income under Section 139(1) but subsequently files a return in response to a… Read More »
Assessment Set Aside as Failure to Provide Mandatory Faceless Personal Hearing Violates Principles of Natural Justice Issue Whether an assessment order passed under Section 144B of the Income-tax Act, 1961 (Section 273 of the Income-tax Act, 2025) is legally sustainable when the Assessing Officer fails to grant a personal hearing through video conference despite an… Read More »
Final Assessment Order Passed in the Name of an Amalgamated, Non-Existent Entity is Void Issue Whether DRP directions and a final assessment order passed under Section 143(3) read with Sections 144C(13) and 144B in the name of an erstwhile amalgamated company are valid, when the fact of amalgamation and subsequent name change had already been… Read More »
Downward Profit Adjustments Unsustainable Without Material Proof and Financially Distressed Comparables Must Be Excluded Downward Profit Adjustments Unsustainable Without Material Proof and Financially Distressed Comparables Must Be Excluded Issue Whether a profit adjustment under Section 80-IA(10) can be sustained if the Transfer Pricing Officer (TPO) fails to provide material evidence proving a close connection, an… Read More »
TPO cannot arbitrarily value management fees at ‘Nil’ or treat interest on receivables as a standalone transaction. Issue Whether the Transfer Pricing Officer (TPO) was legally justified in reducing the Arm’s Length Price (ALP) of management fees and royalty payments to ‘Nil’, making a separate adjustment for interest on outstanding receivables, and disallowing late employee… Read More »
Show-cause notices issued after the expiry of the High Court’s strict 12-week remand deadline are legally void. Issue Whether show-cause notices issued under Section 271D read with Section 260A are legally sustainable when the 12-week time limit explicitly mandated by the High Court for passing a fresh order under remand has completely expired. Facts The… Read More »