Tag Archives: Commissioner of Income-tax

Rejection of Registration for Selecting Wrong Sub-Clause Unjustified; Matter Remanded for Rectification and Consideration

By | October 17, 2026
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Rejection of Registration for Selecting Wrong Sub-Clause Unjustified; Matter Remanded for Rectification and Consideration Issue Whether the CIT(E) was justified in rejecting an application for regularisation of provisional registration under Section 12AB filed in Form 10AB solely because the trust selected the wrong sub-clause in the form. Facts Assessee Profile: The assessee is a trust… Read More »

Form 10B Accepted Within Extended Return Due Date Constitutes Valid Compliance Entitling Section 11 Exemption

By | October 17, 2026
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Form 10B Accepted Within Extended Return Due Date Constitutes Valid Compliance Entitling Section 11 Exemption Issue Whether uploading Form 10B on the due date of the return and formal trustee acceptance on the next day—prior to the extended return deadline—satisfies Section 12A(1)(b) compliance, making disallowance under Section 143(1) and rejection of condonation under Section 119(2)(b)… Read More »

Non-Compete Fee Taxable in Right Assessee’s Hands Following Binding Precedent Deleting Duplicate Slump Sale Addition

By | October 16, 2026
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Non-Compete Fee Taxable in Right Assessee’s Hands Following Binding Precedent Deleting Duplicate Slump Sale Addition Issue Whether the Tribunal was justified in upholding the deletion of an addition of ₹9 crores made towards non-compete fee and slump sale in the assessee’s hands, when the taxability of ₹7 crores of the said non-compete fee received by… Read More »

Power generation qualifies as production, entitling manufacturers to additional depreciation under Section 32(1)(iia)

By | October 13, 2026
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Power generation qualifies as production, entitling manufacturers to additional depreciation under Section 32(1)(iia) Issue Whether power generation comes within the scope of “production” under Section 32(1)(iia) of the Income-tax Act, 1961 to qualify for additional depreciation on new plant and machinery installed at a Captive Power Plant (CPP) and Wind Power Plant (WPP). Whether an… Read More »

Power subsidy granted to reimburse operational electricity charges without capital asset creation is a taxable revenue receipt

By | October 13, 2026
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Power subsidy granted to reimburse operational electricity charges without capital asset creation is a taxable revenue receipt Issue Whether an electricity subsidy received from the government to reduce recurring power expenses during manufacturing operations, without any requirement to acquire capital assets or construct factory infrastructure, constitutes a capital receipt or a taxable revenue receipt under… Read More »

Absence of explicit irrevocability and dissolution clauses in trust deed is not ground for denying Section 12AB registration and Section 80G approval

By | October 8, 2026
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Absence of explicit irrevocability and dissolution clauses in trust deed is not ground for denying Section 12AB registration and Section 80G approval Issue Whether the absence of explicit “irrevocable” and “dissolution” clauses in a trust deed justifies the rejection of an application for registration/revalidation under Section 12AB and approval under Section 80G(5)(ii). Facts The assessee-trust… Read More »

Rejection of Form 10AB registration without examining submitted activity details is unsustainable; matter remanded for re-adjudication.

By | October 7, 2026
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Rejection of Form 10AB registration without examining submitted activity details is unsustainable; matter remanded for re-adjudication. Rejection of Form 10AB registration without examining submitted activity details is unsustainable; matter remanded for re-adjudication. Issue Whether CIT (Exemption) can reject an application for regular registration under Section 12AB on grounds of low spending and non-commencement of main… Read More »

Mere execution of a Tripartite Joint Development Agreement does not constitute a ‘transfer’ under Section 2(47).

By | October 6, 2026
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Mere execution of a Tripartite Joint Development Agreement does not constitute a ‘transfer’ under Section 2(47). Issue Whether the mere execution of a Tripartite Joint Development Agreement dated 25.02.2007, without transferring possession or receiving actual accrued consideration, results in a “transfer” attracting capital gains tax for Assessment Year 2007-08 under Section 2(47) of the Income-tax… Read More »

Renewal Application under Section 80G(5) Clause (ii) by Trust Holding Regular Approval Is Valid

By | October 1, 2026
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Renewal Application under Section 80G(5) Clause (ii) by Trust Holding Regular Approval Is Valid Issue Whether an application for renewal of approval under Section 80G(5) filed under clause (ii) of the first proviso is maintainable when the assessee-trust holds a regular approval on the date of filing the application, as opposed to a provisional approval.… Read More »

Taxpayer-Bank With Sufficient Surplus Funds Needs No Section 14A Disallowance On Exempt Income

By | October 1, 2026
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Taxpayer-Bank With Sufficient Surplus Funds Needs No Section 14A Disallowance On Exempt Income Issue Whether disallowance under Section 14A of the Income-tax Act, 1961, read with Rule 8D of the Income-tax Rules, 1962, can be sustained or estimated by the Department when the assessee, a banking company, possesses sufficient and adequate surplus interest-free funds to… Read More »