Tag Archives: Commissioner of Income-tax

CIT(E) cannot dilute a binding jurisdictional High Court precedent by inserting speculative future Supreme Court appeal caveats in registration orders.

By | July 16, 2026
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CIT(E) cannot dilute a binding jurisdictional High Court precedent by inserting speculative future Supreme Court appeal caveats in registration orders. Issue Whether the Commissioner of Income-tax (Exemptions) [CIT(E)], while granting fresh registration and approval under sections 12AB and 80G based on a binding jurisdictional High Court precedent, can legally incorporate a caveat making the grant… Read More »

No Penalty for Concealment Can Be Levied When Returned Interest Income Is Accepted Without Additions

By | July 15, 2026
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No Penalty for Concealment Can Be Levied When Returned Interest Income Is Accepted Without Additions Issue Whether a penalty for concealment of chargeable interest or furnishing inaccurate particulars under Section 13 of the Interest Tax Act, 1974 can be legally sustained when the Assessing Officer accepts the assessee’s filed returns without making any additions or… Read More »

Textile machinery replacement expenditure is remanded for fresh verification under Supreme Court repair guidelines.

By | July 10, 2026
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Textile machinery replacement expenditure is remanded for fresh verification under Supreme Court repair guidelines. Issue Whether the expenditure incurred by a textile manufacturing company on replacing independent, sophisticated plant and machinery can be classified as a deductible revenue expenditure or “current repairs,” or if it must be treated as a capital expenditure. Facts The assessee… Read More »

CIT(E) cannot reject trust registration renewal by re-agitating grounds already quashed by the Tribunal.

By | July 10, 2026
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CIT(E) cannot reject trust registration renewal by re-agitating grounds already quashed by the Tribunal. CIT(E) cannot reject trust registration renewal by re-agitating grounds already quashed by the Tribunal. Issue Whether the Commissioner of Income-tax (Exemptions) [CIT(E)] is legally justified in rejecting an assessee’s application for renewal of charitable registration under section 12A(1)(ac)(ii) by reviving the… Read More »

Cancellation under Section 12AA(3) for financial diversion is valid prospectively from the order date.

By | July 7, 2026
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Cancellation under Section 12AA(3) for financial diversion is valid prospectively from the order date. Issue Whether a Show Cause Notice detailing search and survey findings can be quashed as vague or lacking particulars. Whether incriminating materials, including cash and fund diversions to a Managing Trustee’s concerns, justify the cancellation of a trust’s charitable registration. Whether… Read More »

Consideration received for transferring property development rights is taxable exclusively under Capital Gains.

By | July 6, 2026
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Consideration received for transferring property development rights is taxable exclusively under Capital Gains. Issue Whether development rights in an immovable property constitute a “capital asset” under Section 2(14) of the Income-tax Act, making the contractual consideration received for their transfer taxable under the head “Capital Gains” rather than “Income from Other Sources.” Facts The Agreement:… Read More »

Foreign exchange gains are operating income, and expense allocation must follow gross profit margins

By | July 4, 2026
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Foreign exchange gains are operating income, and expense allocation must follow gross profit margins Issue Whether the Transfer Pricing Officer (TPO) is legally justified in treating business-related foreign exchange gains as non-operating income, modifying common expense allocations from gross profit to turnover basis, and eliminating comparables without persistent losses under the Transactional Net Margin Method… Read More »

One-time settlement to contractors is fully deductible under Section 37 as revenue business expenditure

By | July 4, 2026
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One-time settlement to contractors is fully deductible under Section 37 as revenue business expenditure Issue Whether a one-time settlement paid to contractors during business restructuring can be restricted to a one-fifth deduction under Section 35DDA parity, and whether Section 14A disallowances and DDT treaty rate claims can be finalized without proper lower authority verification or… Read More »

CIT(E) cannot reject a trust’s renewal application over a technical selection mistake in Form 10AB

By | July 4, 2026
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CIT(E) cannot reject a trust’s renewal application over a technical selection mistake in Form 10AB Issue Whether the CIT(E) is legally justified in rejecting a charitable trust’s renewal application under Section 12AB simply because the trust inadvertently selected the incorrect statutory clause on the electronic form. Facts The Assessee: A charitable institution that already held… Read More »

Disallowances under Section 14A, 37, and 115JA are deleted for foreign banks on multiple issues

By | July 4, 2026
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Disallowances under Section 14A, 37, and 115JA are deleted for foreign banks on multiple issues Issue Whether the various additions and disallowances made by the Assessing Officer concerning Section 14A exempt income expenses, broken period interest on stock-in-trade, MAT applicability to banking companies, gross taxation of foreign currency loans, intra-entity transactions with the Head Office,… Read More »