Tag Archives: DCIT

Export Commission Outside Scope of Tax Deduction, Technical Fees Taxable, and Section 14A Matter Remanded

By | October 31, 2026
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Export Commission Outside Scope of Tax Deduction, Technical Fees Taxable, and Section 14A Matter Remanded Issue Whether payments to non-residents for export commission and brochure distribution are exempt from TDS under Section 9(1)(vii)(b), whether import inspection services constitute Fees for Technical Services (FTS) requiring TDS under Section 40(a)(i), and whether a Section 14A disallowance must… Read More »

Direct assessment framed under Section 143(3) without Section 148 notice and Section 148B prior approval post-search is illegal and quashed

By | October 28, 2026
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Direct assessment framed under Section 143(3) without Section 148 notice and Section 148B prior approval post-search is illegal and quashed Issue Whether an assessment for a preceding assessment year (A.Y. 2023-24) falling within Explanation 2 to Section 148 following a search under Section 132 can be framed directly under Section 143(3) without issuing a notice… Read More »

Vague Penalty Notices and Correctly Recorded Ongoing Financial Year Expenses Cannot Support Under-Reporting or Undisclosed Income Penalties

By | October 26, 2026
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Vague Penalty Notices and Correctly Recorded Ongoing Financial Year Expenses Cannot Support Under-Reporting or Undisclosed Income Penalties Issue Whether a penalty notice issued under Section 274 read with Section 270A without specifying the precise clause of Section 270A(2) is legally sustainable? Whether expenditure recorded in unofficial books (kaccha books) during an ongoing financial year can… Read More »

Reassessment notice issued beyond outer time limit of 31-3-2023 for AY 2016-17 is barred by limitation.

By | October 21, 2026
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Reassessment notice issued beyond outer time limit of 31-3-2023 for AY 2016-17 is barred by limitation. Issue Whether the outer limit for issuing a reassessment notice under section 148 for AY 2016-17 was 31-03-2023 as per the first proviso to section 149. Whether the time granted to the assessee to reply under section 148A(b) is… Read More »

Section 263 Revision Invalid On Issues Beyond Incriminating Material Uncovered During Search Proceedings

By | October 16, 2026
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Section 263 Revision Invalid On Issues Beyond Incriminating Material Uncovered During Search Proceedings Issue Whether the Principal Commissioner can validly invoke revisionary jurisdiction under Section 263 to set aside a reassessment order for lack of inquiry into TDS on transportation charges under Section 40(a)(ia), when the reopening under Section 147/148 was triggered by search materials… Read More »

Corporate Guarantee Fee Reduced to Half Percent, TP Segmental Verification Remanded, and Belated Return Restrictions Excluded for Brought-Forward Loss and Unabsorbed Depreciation

By | October 16, 2026
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Corporate Guarantee Fee Reduced to Half Percent, TP Segmental Verification Remanded, and Belated Return Restrictions Excluded for Brought-Forward Loss and Unabsorbed Depreciation Issue Whether corporate guarantee rates can be benchmarked against bank guarantee rates, whether internal TNMM should be evaluated via certified segmental accounts, and whether belated filing of a return under Section 139(4) disentitles… Read More »

Reassessment based on vague group-level search findings and lacking primary additions is invalid and quashed.

By | October 14, 2026
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Reassessment based on vague group-level search findings and lacking primary additions is invalid and quashed. Issue Whether a reassessment initiated under Section 148 based on generic group-level search reasons, without assessee-specific incriminating material, and approved mechanically under Section 151, is valid in law. Whether an Assessing Officer can complete a reassessment under Section 147 by… Read More »

Interest paid to NHAI is exempt from TDS under Section 194A notification, negating default liability

By | October 13, 2026
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Interest paid to NHAI is exempt from TDS under Section 194A notification, negating default liability Issue Whether National Highways Authority of India (NHAI) qualifies as a corporation established by a Central Act under Notification No. 3489 dated 22.10.1970 issued under Section 194A(3)(iii)(f). Whether an assessee paying interest on mobilization advances to NHAI is required to… Read More »

Section 14A Disallowance Restricted to 1% as Rule 8D Inapplicable and Interest Reversal Allowed Under RBI Norms

By | October 9, 2026
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Section 14A Disallowance Restricted to 1% as Rule 8D Inapplicable and Interest Reversal Allowed Under RBI Norms Issue Whether Section 14A disallowance read with Rule 8D applies retrospectively for AYs 1997-98 and 1998-99, or if disallowance should be restricted to a reasonable estimate like 1% of exempt interest income. Whether an assessee-bank can claim a… Read More »

Key Tax Positions on Deductions, Transfer Pricing, TDS, and Expenses for Telecom Operators Established

By | October 8, 2026
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Key Tax Positions on Deductions, Transfer Pricing, TDS, and Expenses for Telecom Operators Established Issue Whether determinations under Section 80-IA (initial year and inclusion of operational receipts like interest, foreign exchange gains, and site-sharing revenue) require accounting for past appellate/rectification orders and integral business nexus. Whether payments for annual telecom license fees, Asset Restoration Costs… Read More »