Tag Archives: Assistant Commissioner of Income-tax

Unrecorded warranty receivables from an AE constitute an asset, validating extended reassessment and special audit.

By | July 9, 2026
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Unrecorded warranty receivables from an AE constitute an asset, validating extended reassessment and special audit. Issue Whether unrecorded contractual receivables from an Associated Enterprise (AE) for warranty reimbursements constitute an “asset” under Section 153A, allowing the extended 10-year reassessment notice window under Section 149(1)(b). Whether an extended reassessment notice can be sustained if the recorded… Read More »

Disallowance stands upheld for unverified TDS components, but crystallized expenses and legitimate business write-offs are allowable.

By | July 7, 2026
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Disallowance stands upheld for unverified TDS components, but crystallized expenses and legitimate business write-offs are allowable. Issue Whether tax disallowance under Section 40(a)(ia) applies to unverified or unsupported consultancy components and interest payments where corresponding payees have not proved tax compliance. Whether business expenses that crystallized in the relevant year, expenses invoiced to group concerns,… Read More »

Reassessment notice issued beyond three years is void if sanctioned by the incorrect tax authority.

By | July 6, 2026
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Reassessment notice issued beyond three years is void if sanctioned by the incorrect tax authority. Issue Whether a reassessment notice issued under Section 148 after the expiry of three years from the end of the relevant assessment year is legally valid when the mandatory administrative sanction under Section 151 was granted by the Principal Commissioner… Read More »

Total deductions under Heading C cannot exceed the eligible business profits after factoring Section 80-IA reliefs.

By | July 6, 2026
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Total deductions under Heading C cannot exceed the eligible business profits after factoring Section 80-IA reliefs. Issue Whether the restriction contained in Section 80-IA(9) requires the deduction allowed under Section 80-IA to be reduced directly from the Gross Total Income during computation, or if it merely caps the quantum of concurrent deductions claimed under Heading… Read More »

Section 80-IB deduction does not reduce profits for computing Section 80HHC deduction; matter remanded.

By | July 4, 2026
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Section 80-IB deduction does not reduce profits for computing Section 80HHC deduction; matter remanded. Issue Whether the restriction under Section 80-IA(9) requires the deduction under Section 80-IB to be reduced from business profits before computing the Section 80HHC deduction, or if it merely restricts the final allowability of the total deductions. Facts For the assessment… Read More »

Deduction under Section 80-IB excludes DEPB/duty drawback; Section 80-IA vs 80-HHC computation issue is remanded.

By | July 4, 2026
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Deduction under Section 80-IB excludes DEPB/duty drawback; Section 80-IA vs 80-HHC computation issue is remanded. Issue Issue 1: Whether the relief under Section 80-IA must be deducted from business profits before computing the export deduction under Section 80-HHC, and whether this needs to be re-evaluated based on recent Supreme Court precedent. Issue 2: Whether incentives… Read More »

Long-term capital losses can be set off against capital gains arising from depreciable assets.

By | July 4, 2026
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Long-term capital losses can be set off against capital gains arising from depreciable assets. Issue Whether the deeming fiction under section 50, which treats gains from depreciable assets as short-term capital gains, converts the underlying long-term asset into a short-term asset, thereby barring the set-off of current year and brought forward long-term capital losses under… Read More »

Assessment order quashed and remanded due to denial of mandatory personal hearing despite alternative remedy.

By | July 2, 2026
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Assessment order quashed and remanded due to denial of mandatory personal hearing despite alternative remedy. Issue Whether a writ petition under Article 226 of the Constitution is maintainable against an assessment order despite the availability of an alternative statutory appellate remedy, and whether the order is legally sustainable if passed in violation of mandatory personal… Read More »

Assessee Entitled To Depreciation On Amalgamation Goodwill And Debt-Free Companies Are Exempt From Notional Interest Adjustments

By | July 2, 2026
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Assessee Entitled To Depreciation On Amalgamation Goodwill And Debt-Free Companies Are Exempt From Notional Interest Adjustments Issue Whether an assessee is entitled to claim depreciation at 25% under section 32(1)(ii) on goodwill arising out of an amalgamation scheme approved by the High Court, in the absence of any specific statutory embargo. Whether a Transfer Pricing… Read More »

Assessment order violating natural justice is maintainable under writ jurisdiction and liable to be quashed.

By | June 30, 2026
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Assessment order violating natural justice is maintainable under writ jurisdiction and liable to be quashed. Issue Whether a writ petition under Article 226 of the Constitution of India is maintainable against a high-demand assessment order passed in violation of the principles of natural justice and mandatory statutory procedures, despite the availability of an alternative statutory… Read More »