Tag Archives: Commissioner of Income-tax

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

By | July 4, 2026
0 Comment

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
0 Comment

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
0 Comment

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 »

CIT(E) Cannot Cancel Hospital’s Trust Registration Retrospectively Over Self-Determined Non-Tax Violations and Premium Infrastructure

By | July 4, 2026
0 Comment

CIT(E) Cannot Cancel Hospital’s Trust Registration Retrospectively Over Self-Determined Non-Tax Violations and Premium Infrastructure Issue Whether the CIT(E) is legally justified in retrospectively cancelling and refusing the renewal of a public charitable hospital’s tax registration under Section 12AB and Section 80G by self-adjudicating alleged compliance failures under the Maharashtra Public Trusts Act (Indigent Patient Fund… Read More »

Interest Paid on Funds Borrowed for Commercial Expediency to Acquire Controlling Interest is Fully Deductible

By | June 27, 2026
0 Comment

Interest Paid on Funds Borrowed for Commercial Expediency to Acquire Controlling Interest is Fully Deductible Issue Whether the interest paid on capital borrowed by an assessee to acquire shares in a company through a group concern is deductible under Section 36(1)(iii) of the Income-tax Act, 1961, when evaluated under the touchstone of commercial expediency. Facts… Read More »

CIT(E) Cannot Reject Section 12AB and 80G Renewals for Objects It Already Formally Approved

By | June 27, 2026
0 Comment

CIT(E) Cannot Reject Section 12AB and 80G Renewals for Objects It Already Formally Approved Issue Whether the CIT(E) was justified in rejecting the renewal of registration under Section 12AB and the consequential approval under Section 80G on the procedural grounds of delayed filing after modification of objects, when the CIT(E) itself had already granted approval… Read More »

Delay in filing Form 10AB must be condoned when registration is rejected without checking charitable merits.

By | June 26, 2026
0 Comment

Delay in filing Form 10AB must be condoned when registration is rejected without checking charitable merits. Delay in filing Form 10AB must be condoned when registration is rejected without checking charitable merits. Issue Whether the CIT(Exemption) is legally justified in summarily rejecting an application for final approval under Section 80G(5) solely on the grounds of… Read More »

Application for Section 12AB registration cannot be rejected without recording a reasoned finding on specified violations.

By | June 25, 2026
0 Comment

Application for Section 12AB registration cannot be rejected without recording a reasoned finding on specified violations. Application for Section 12AB registration cannot be rejected without recording a reasoned finding on specified violations. Issue Whether the Commissioner (Exemptions) is justified in rejecting a trust’s application for fresh registration under section 12AB on the grounds that its… Read More »

CIT(E) cannot reject trust registration renewal over past amendments; matters remanded for verification.

By | June 24, 2026
0 Comment

CIT(E) cannot reject trust registration renewal over past amendments; matters remanded for verification. Issue Whether the CIT(E) is justified in rejecting a trust’s Section 12A registration renewal application based on non-registration under a State Trust Act, historical object amendments, and financial advances when these details were already on record during its previous 2021 re-registration. Whether… Read More »

Prior to the Finance Act 2012 Amendment, Section 115JB (MAT) Did Not Apply to Foreign Banking Companies

By | June 18, 2026
0 Comment

Prior to the Finance Act 2012 Amendment, Section 115JB (MAT) Did Not Apply to Foreign Banking Companies Issue Whether the Minimum Alternate Tax (MAT) provisions under Section 115JB of the Income-tax Act, 1961 are applicable to a foreign banking company (Royal Bank of Scotland) for the Assessment Year 2011-12, given that specific statutory amendments bringing… Read More »