Tag Archives: Deputy Commissioner of Income-tax

Weighted Deduction Under Section 35(2AB) Is Limited to DSIR Approval, but Unapproved Portion Is Deductible Under Section 37(1)

By | July 27, 2026
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Weighted Deduction Under Section 35(2AB) Is Limited to DSIR Approval, but Unapproved Portion Is Deductible Under Section 37(1) Issue Whether an in-house scientific research expenditure disallowed for weighted deduction under Section 35(2AB) due to partial approval by DSIR in Form 3CL is still allowable as a normal business expenditure under Section 37(1). Facts Assessee &… Read More »

CIT(A) Order Dismissing Appeal In Limine Without Requested Hearing Violates Natural Justice Requiring Remand

By | July 25, 2026
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CIT(A) Order Dismissing Appeal In Limine Without Requested Hearing Violates Natural Justice Requiring Remand Issue Violation of Natural Justice in Delay Condonation Order: Whether a dismissal order passed in limine by the CIT(A) rejecting an application for condonation of delay without granting a requested personal/virtual hearing violates principles of natural justice, requiring the matter to… Read More »

Consolidated Satisfaction Note Covering Multiple Years Invalidates Section 153C Assessment Proceedings

By | July 25, 2026
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Consolidated Satisfaction Note Covering Multiple Years Invalidates Section 153C Assessment Proceedings Issue Validity of Section 153C Assessment Proceedings Based on a Consolidated Satisfaction Note: Whether the initiation of proceedings and subsequent additions made under Section 69A (read with Section 153C) are legally valid when the Assessing Officer records a single, common satisfaction note covering multiple… Read More »

Section 54 Exemption Applies to Multiple Residential Properties Transferred When Capital Gains Reinvested in Equal or Fewer Houses

By | July 24, 2026
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Section 54 Exemption Applies to Multiple Residential Properties Transferred When Capital Gains Reinvested in Equal or Fewer Houses Issue Whether an assessee who transfers multiple residential houses and incurs long-term capital gains is entitled to claim exemption under Section 54 for investing in a corresponding number of new residential houses (not exceeding the number of… Read More »

TPO cannot apply domestic CUP for benchmarking export sales without geographic market adjustments.

By | July 24, 2026
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TPO cannot apply domestic CUP for benchmarking export sales without geographic market adjustments. Issue Whether domestic sales prices can be adopted as CUP to benchmark export sales without making suitable adjustments for differences in geographic locations and market conditions under Transfer Pricing provisions. What is the appropriate interest rate for benchmarking delayed realization of export… Read More »

Disallowances and Additions Based on Retracted Statements and Uncorroborated Third-Party Materials Are Impermissible

By | July 23, 2026
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Disallowances and Additions Based on Retracted Statements and Uncorroborated Third-Party Materials Are Impermissible Issue Whether additions made towards consultancy charges, alleged unaccounted cash sales, cash salary payments, land purchase “on-money”, and unexplained expenditures/moneys can be sustained under Sections 37, 68, 69A, and 69C when based solely on retracted statements, WhatsApp chats, and third-party loose papers… Read More »

Disallowance of Demerged Losses Upheld while ESOP Expenses Allowed and Deferred Income Addition Deleted.

By | July 23, 2026
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Disallowance of Demerged Losses Upheld while ESOP Expenses Allowed and Deferred Income Addition Deleted. Issue Whether, for Assessment Year 2015–16: The disallowance of prior period expenses without due verification requires remand to the Assessing Officer; ESOP discount expenses claimed upon actual option exercise are allowable business expenditure under Section 37(1); Accumulated business losses and unabsorbed… Read More »

Reassessment Sanction Granted by PCIT Instead of PCCIT After Three Years Is Void Ab Initio

By | July 22, 2026
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Reassessment Sanction Granted by PCIT Instead of PCCIT After Three Years Is Void Ab Initio Reassessment Sanction Granted by PCIT Instead of PCCIT After Three Years Is Void Ab Initio Issue Whether a reassessment notice issued under Section 148 and an order passed under Section 148A(d) after the expiry of three years from the end… Read More »

Intra-City Transfer of Tax Cases Under Section 127 Requires No Notice or Hearing to Assessee

By | July 22, 2026
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Intra-City Transfer of Tax Cases Under Section 127 Requires No Notice or Hearing to Assessee Intra-City Transfer of Tax Cases Under Section 127 Requires No Notice or Hearing to Assessee Issue Whether transfer orders passed under Section 127 moving an assessee’s assessment case between Assessing Officers within the same city require prior notice or an… Read More »

Section 154 Limitation Runs From Reassessment Order, and Capital Subsidy Excludes From MAT

By | July 22, 2026
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Section 154 Limitation Runs From Reassessment Order, and Capital Subsidy Excludes From MAT Section 154 Limitation Runs From Reassessment Order, and Capital Subsidy Excludes From MAT Issue Whether the limitation period for filing a Section 154 rectification application is calculated from the original assessment order or the reassessment order, especially when the reassessment dispute was… Read More »