Reassessment orders passed by the NFAC prior to March 2022 are valid under Section 147A. Reassessment orders passed by the NFAC prior to March 2022 are valid under Section 147A. Issue On Reassessment Jurisdiction: Whether a faceless reassessment order passed by the National Faceless Assessment Centre (NFAC) prior to March 29, 2022, is invalid or… Read More »
Reassessment Notice Issued Beyond Six-Year Limitation and Consequential Assessment Order Quashed as Time-Barred Reassessment Notice Issued Beyond Six-Year Limitation and Consequential Assessment Order Quashed as Time-Barred Issue Whether an income tax reassessment notice issued under Section 148 on August 30, 2024, for the Assessment Year 2016-17, along with its consequential assessment order, is legally sustainable… Read More »
Reassessment notice issued beyond the combined exclusion period under Section 149 provisos is barred by limitation. Issue Whether a reassessment notice issued under Section 148, along with the preceding order under Section 148A(d), is barred by limitation for the Assessment Year (AY) 2017-18 when computed by applying the mutual exclusions under the fifth and sixth… Read More »
Internal TNMM governs chemical transfer pricing, while additional depreciation applies to storage tanks but is denied for routine spares. Issue Whether the tax authorities are legally justified in modifying transfer pricing methods (CUP vs. Internal TNMM), disallowing additional depreciation on plant spares and storage tanks, adjusting book profits under Section 115JB for prior-period expenses, capitalising… Read More »
High Court precedent binds TPO on comparables, while healthcare and IT services are functionally distinct from market research. Issue Whether the Transfer Pricing Officer (TPO) is justified in selectively applying filters and excluding historically accepted comparables despite binding High Court precedents, and whether software depreciation (60% vs 25%) and international travel expense disallowances warrant fresh… Read More »
Registration and written agreement are mandatory for firm’s depreciation on inherited partner properties, and high court rejects writ petition due to available appellate remedies. Issue Whether a partnership firm can claim depreciation under Section 32 on immovable properties without a written, registered transfer deed by invoking Section 53A of the Transfer of Property Act, and… Read More »
Estimation Of Profit From Unrecorded Sales Is Impermissible Without Explicitly Rejecting Books Of Account Issue Whether the Assessing Officer can legally estimate an addition based on a gross profit rate applied to alleged unrecorded sales found during a survey, without formally rejecting the assessee’s books of account under Section 145(3) or invoking Section 144. Facts… Read More »
No Additions for Capital Gains Allowable Absent Incriminating Search Material or Retrospective Application of Section 45(5A) Issue For AYs 2017-18 to 2019-20: Whether additions on account of capital gains arising from a Joint Development Agreement (JDA) can be made under Section 153A following a search, if no incriminating material was found and the relevant documents… Read More »