Tag Archives: Commissioner of Income-tax

Exclusion of High-End KPO and Outsourced Entities from Routine Back-Office Transfer Pricing Benchmarking

By | September 10, 2026
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Exclusion of High-End KPO and Outsourced Entities from Routine Back-Office Transfer Pricing Benchmarking Issue Whether high-end KPO/IT entities, companies with heavy outsourcing models, entities lacking segmental data, and companies with abnormal turnover or demergers can be valid comparables for benchmarking routine back-office support services, and whether adjustments for working capital, interest on receivables, cost allocations,… Read More »

Housing Board Fulfilling Public Housing Needs Qualifies as Charitable Under Section 2(15) Exemptions

By | September 10, 2026
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Housing Board Fulfilling Public Housing Needs Qualifies as Charitable Under Section 2(15) Exemptions Issue Whether the proviso to Section 2(15) read with Section 13(8) of the Income-tax Act, 1961 (and corresponding sections under the Income-tax Act, 2025) applies to a State Housing Board formed to satisfy the housing accommodation needs of the general public, thereby… Read More »

Institutions with religious activities qualify for Section 80G registration if religious expenditure is under 5%.

By | September 9, 2026
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Institutions with religious activities qualify for Section 80G registration if religious expenditure is under 5%. Issue Whether an institution engaged in religious activities remains eligible for approval under Section 80G if its religious expenditure does not exceed 5% of its total income pursuant to the deeming fiction under Section 80G(5B) [Section 133 of Income-tax Act,… Read More »

Registration under Section 12AB cannot be cancelled absent proof of non-genuine activities or statutory violations.

By | September 9, 2026
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Registration under Section 12AB cannot be cancelled absent proof of non-genuine activities or statutory violations. Issue Whether CIT(E) can cancel an educational trust’s Section 12AB registration over bank cash deposits, high surplus ratios, or unrecorded leases without proving non-genuine activities or fund diversion. Facts Registration Granted: The assessee-society, running educational institutions, was granted registration under… Read More »

Section 54GB exemption denied as company incorporation date strictly determines eligibility, not business commencement date.

By | September 5, 2026
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Section 54GB exemption denied as company incorporation date strictly determines eligibility, not business commencement date. Issue Whether an investment in a company incorporated prior to the statutory window satisfies Section 54GB(6) eligibility criteria if manufacturing operations or MSME registration commenced within the specified period. Facts Capital Gains Realized: For Assessment Year 2017-18, the individual assessee… Read More »

Section 263 Revision Based on External Dictation Quashed; Interest-Free Loan to Overseas Subsidiary Held Quasi-Equity and Purchases Made for Commercial Expediency Allowed

By | September 5, 2026
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Section 263 Revision Based on External Dictation Quashed; Interest-Free Loan to Overseas Subsidiary Held Quasi-Equity and Purchases Made for Commercial Expediency Allowed Issue Issue I (Section 263 Revision): Whether a revision order under Section 263 is legally sustainable when initiated under dictates/pressures from higher authorities rather than through independent application of mind by the Administrative… Read More »

Registration rejection under Section 12A set aside for fresh decision due to violation of natural justice.

By | September 5, 2026
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Registration rejection under Section 12A set aside for fresh decision due to violation of natural justice. Issue Whether the rejection of a trust’s registration application under Section 12A(1)(ac)(iii) without issuing a show cause notice or affording a opportunity of hearing is legally sustainable. Facts Assessee-trust filed an application seeking registration under Section 12A(1)(ac)(iii) of the… Read More »

Deletion of Section 271(1)(c) Penalty Upheld as Interest Disallowance Under Section 36(1)(iii) Was Debatable

By | September 4, 2026
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Deletion of Section 271(1)(c) Penalty Upheld as Interest Disallowance Under Section 36(1)(iii) Was Debatable Issue Whether the Income Tax Appellate Tribunal (ITAT) was justified in deleting the penalty levied under Section 271(1)(c) of the Income-tax Act, 1961, which was imposed following the disallowance of interest on Secured Premium Notes under Section 36(1)(iii), given that the… Read More »

Ind AS accounting entries cannot override tax provisions or trigger double taxation on income.

By | September 4, 2026
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Ind AS accounting entries cannot override tax provisions or trigger double taxation on income. Ind AS accounting entries cannot override tax provisions or trigger double taxation on income. Issue Whether book entries under Ind AS dictate taxability, leading to double taxation or improper disallowances under the Income-tax Act, and the validity of statutory claims regarding… Read More »

One-Day Delay in Filing Form 10B During COVID-19 Condoned Due to Genuine Hardship

By | September 3, 2026
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One-Day Delay in Filing Form 10B During COVID-19 Condoned Due to Genuine Hardship Issue Whether a one-day delay in filing the audit report in Form 10B during the COVID-19 period should be condoned under Section 119(2)(b) when the delay causes genuine hardship to a charitable trust claiming tax exemption under Section 11. Facts Assessee Status:… Read More »