Tag Archives: DCIT

Provisional and Confirmed Benami Attachment Valid Despite Prior PMLA Attachment Due to Non-Disclosure

By | July 27, 2026
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Provisional and Confirmed Benami Attachment Valid Despite Prior PMLA Attachment Due to Non-Disclosure Provisional and Confirmed Benami Attachment Valid Despite Prior PMLA Attachment Due to Non-Disclosure Issue Whether an Initiating Officer can validly pass and continue a provisional attachment under Section 24 of the PBPT Act, 1988, leading to confirmation under Section 26(3), when the… Read More »

Jurisdiction objections must be timely, DTAA benefits apply to DDT, and accrued provisions are allowable.

By | July 16, 2026
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Jurisdiction objections must be timely, DTAA benefits apply to DDT, and accrued provisions are allowable. Issue Whether an assessment order passed by an Additional CIT authorized under section 120(4)(b) is void ab initio if the assessee fails to raise a jurisdictional objection within the statutory timeline of section 124. Whether Dividend Distribution Tax (DDT) levied… Read More »

Assessing Officer of Other Person Must Independently Record Satisfaction Before Overcoming Section 153C Sunset Clause

By | July 11, 2026
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Assessing Officer of Other Person Must Independently Record Satisfaction Before Overcoming Section 153C Sunset Clause Assessing Officer of Other Person Must Independently Record Satisfaction Before Overcoming Section 153C Sunset Clause Issue Whether a Section 153C assessment is legally valid when the Assessing Officer (AO) of the assessee blindly reproduces a forwarding letter from the searched… Read More »

Rulings favor assessee on transfer pricing filters, unearned revenue additions, and net foreign exchange losses.

By | July 11, 2026
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Rulings favor assessee on transfer pricing filters, unearned revenue additions, and net foreign exchange losses. Issue Whether a comparable company can be excluded under the “persistent loss-making” filter if it has reported a profit in one of the preceding three financial years. Whether the Dispute Resolution Panel (DRP) should admit additional evidence to include a… Read More »

Sale proceeds from undisputed prior-year unlisted investments cannot be treated as unexplained cash credits.

By | July 9, 2026
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Sale proceeds from undisputed prior-year unlisted investments cannot be treated as unexplained cash credits. Issue Whether the sale proceeds from the disposal of unlisted equity investments, which originated in unchecked prior years, can be treated as unexplained cash credits under section 68, and whether an ad hoc addition for commission expenses can be made under… Read More »

Trust registration cannot be cancelled for financial irregularities without deviation from core charitable objects.

By | July 9, 2026
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Trust registration cannot be cancelled for financial irregularities without deviation from core charitable objects. Issue Whether the PCIT can legally cancel a trust’s tax registration under Section 12AB(4) by invoking clauses (a) and (e) of the Explanation for financial irregularities/related-party benefits under Section 13(3), when the trust continues its genuine charitable activity of imparting education… Read More »

Reassessment under Section 147 is valid if third-party seized material does not directly belong to assessee.

By | July 7, 2026
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Reassessment under Section 147 is valid if third-party seized material does not directly belong to assessee. Issue Whether the Assessing Officer can validly initiate reassessment proceedings under Section 147 based on independent investigation of third-party search data, where the seized material does not directly belong, pertain, or relate to the assessee, thereby rendering the special… Read More »

Section 153C assessments are invalid for excluded block periods and unabated years lacking incriminating material.

By | July 4, 2026
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Section 153C assessments are invalid for excluded block periods and unabated years lacking incriminating material. Issue Issue 1: Whether the block of six assessment years under Section 153C must be reckoned from the deemed date of search (the date the satisfaction note is recorded), thereby excluding years that fall outside this newly calculated window. Issue… Read More »

Functionally dissimilar entities, entrepreneurs, and product developers are invalid comparables for captive IT service providers.

By | June 25, 2026
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Functionally dissimilar entities, entrepreneurs, and product developers are invalid comparables for captive IT service providers. Issue Whether the Transfer Pricing Officer (TPO) was justified in including functionally dissimilar companies, full-fledged entrepreneurs, and product developers in the final list of comparables for a captive service provider, and whether the ad hoc disallowance of repair and maintenance… Read More »

Quantified liabilities, documented payments, and reconciled books cannot be disallowed on a purely ad hoc basis.

By | June 25, 2026
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Quantified liabilities, documented payments, and reconciled books cannot be disallowed on a purely ad hoc basis. Quantified liabilities, documented payments, and reconciled books cannot be disallowed on a purely ad hoc basis. Issue Whether the tax authorities can validly disallow quantified business liabilities, depreciation claims, actual statutory payments, reconciled sales turnover, and staff welfare expenses… Read More »