Tag Archives: Commissioner of Income-tax

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

By | July 4, 2026
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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
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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
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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
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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
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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
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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
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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 »

Deductions Under Section 80HHC Are Not Reduced by Section 80IA, and Capital-Linked Sales-Tax Remissions Are Capital Receipts

By | June 18, 2026
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Deductions Under Section 80HHC Are Not Reduced by Section 80IA, and Capital-Linked Sales-Tax Remissions Are Capital Receipts Deductions Under Section 80HHC Are Not Reduced by Section 80IA, and Capital-Linked Sales-Tax Remissions Are Capital Receipts Issue Whether business profits must be reduced by deductions allowed under Section 80IA while computing the deduction under Section 80HHC of… Read More »

Serving Notice Solely Through the ITBA Portal is Invalid and Cannot Justify Denying Trust Registration or Approvals

By | June 15, 2026
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Serving Notice Solely Through the ITBA Portal is Invalid and Cannot Justify Denying Trust Registration or Approvals Issue Whether serving statutory notices exclusively through the Income Tax Business Application (ITBA) portal constitutes a valid method of service under Section 282(1) read with Rule 127(1), and whether an application for fresh registration under Section 12AB can… Read More »

Provision for Doubtful Debts Must Be Added Back to Book Profits under Section 115JA, but Infrastructure Deduction Audit Reports Can Be Submitted at the Appellate Stage

By | June 11, 2026
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Provision for Doubtful Debts Must Be Added Back to Book Profits under Section 115JA, but Infrastructure Deduction Audit Reports Can Be Submitted at the Appellate Stage Issue Whether a provision for bad and doubtful debts must be added back to the book profits under Section 115JA of the Income-tax Act, 1961 as a provision for… Read More »