Tag Archives: Assistant Commissioner of Income-tax

Liquidated damages, underwriting commission, structuring fees qualify as tax-exempt interest, and Section 36 deductions operate independently.

By | August 7, 2026
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Liquidated damages, underwriting commission, structuring fees qualify as tax-exempt interest, and Section 36 deductions operate independently. Issue Whether liquidated damages, underwriting commission, and structuring fees earned by an infrastructure financial institution qualify as exempt “interest” under Section 10(23G) of the Income-tax Act, 1961. Whether deductions claimed under Section 36(1)(viia)(c) and Section 36(1)(viii) operate independently without… Read More »

Miscellaneous Application for Rectification Under Section 254 Dismissed as No Error Found in Tribunal Stay Order

By | August 6, 2026
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Miscellaneous Application for Rectification Under Section 254 Dismissed as No Error Found in Tribunal Stay Order Miscellaneous Application for Rectification Under Section 254 Dismissed as No Error Found in Tribunal Stay Order Issue Whether a Miscellaneous Application under Section 254(2) for rectification can be entertained to direct a refund or impose costs when the assessee… Read More »

Reassessment Passed Without Disposing Objections via Separate Speaking Order Is Invalid and Quashed

By | August 6, 2026
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Reassessment Passed Without Disposing Objections via Separate Speaking Order Is Invalid and Quashed Issue Whether a reassessment order passed under section 147 read with section 143(3) is legally valid when the Assessing Officer fails to dispose of the assessee’s objections to the reasons for reopening by a separate speaking order before proceeding with the assessment.… Read More »

Reassessment beyond four years without new tangible material is an impermissible change of opinion and liable to be quashed.

By | August 6, 2026
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Reassessment beyond four years without new tangible material is an impermissible change of opinion and liable to be quashed. Reassessment beyond four years without new tangible material is an impermissible change of opinion and liable to be quashed. Issue Whether reopening of assessment under section 147 beyond four years from the end of the relevant… Read More »

Supreme Court Disposes Revenue SLP Binding Reassessment Extension Validity Under TLA Act to Rajeev Bansal Ruling

By | August 5, 2026
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Supreme Court Disposes Revenue SLP Binding Reassessment Extension Validity Under TLA Act to Rajeev Bansal Ruling Issue Whether reassessment notices issued under unamended Section 148 after April 1, 2021, for AYs 2013-14 and 2014-15 relying on TLA Act notifications are valid or time-barred under the substituted legal regime. Facts For Assessment Years 2013-14 and 2014-15,… Read More »

Reassessment notice under Section 148 based on surmises of Section 41(1) interest waiver is invalid.

By | August 5, 2026
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Reassessment notice under Section 148 based on surmises of Section 41(1) interest waiver is invalid. Reassessment notice under Section 148 based on surmises of Section 41(1) interest waiver is invalid. Issue Whether a reassessment notice issued under Section 148 based on surmises and conjectures that the assessee might have claimed deduction for unpaid interest—which was… Read More »

NRI desk costs fall under Section 44C while Section 36(1)(viia) deduction precedes Section 44C computation.

By | August 5, 2026
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NRI desk costs fall under Section 44C while Section 36(1)(viia) deduction precedes Section 44C computation. Issue Whether overseas branch expenses incurred for operating NRI desks soliciting deposits constitute ‘head office expenditure’ under Section 44C or are allowable as separate business expenses under Section 37(1). Whether data processing charges and overseas branch expenses attributable to Indian… Read More »

Notional interest, clerical reporting errors, and substantiated trade payables cannot be taxed as income.

By | August 5, 2026
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Notional interest, clerical reporting errors, and substantiated trade payables cannot be taxed as income. Issue Whether notional interest calculated on interest-free business advances can be brought to tax under Section 4 of the Income-tax Act in the absence of a contractual clause or evidence of actual accrual/receipt. Whether an addition to income can be made… Read More »

Mere delayed payment of tax without evidence of wilful attempt to evade cannot attract prosecution.

By | August 4, 2026
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Mere delayed payment of tax without evidence of wilful attempt to evade cannot attract prosecution. Issue Whether the mere delayed payment of assessed tax, in the absence of circumstances evidencing a wilful attempt to evade, constitutes an offence under Section 276C(2) when read with the presumption of culpable mental state under Section 278E, and whether… Read More »

Reassessment is invalid if AO fails to dispose of assessee’s objections via separate speaking order.

By | August 4, 2026
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Reassessment is invalid if AO fails to dispose of assessee’s objections via separate speaking order. Issue Whether a reassessment order passed under Section 147 read with Section 143(3) is legally valid when the Assessing Officer fails to dispose of the assessee’s objections against the recorded reasons for reopening by a separate speaking order before completing… Read More »