Tag Archives: Deputy Commissioner of Income-tax

Surplus from transfer of restored development rights is taxable as capital gains, not business income.

By | August 7, 2026
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Surplus from transfer of restored development rights is taxable as capital gains, not business income. Issue Whether gains from the transfer of restored development rights following JDA termination are taxable as capital gains or business income, whether such receipts are exempt capital receipts, and whether connected disallowances under Section 40(a)(ia) and claims for encroachment settlement… Read More »

Matter remanded to verify whether branch office expenses post-business transfer are allowable under Section 28.

By | August 7, 2026
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Matter remanded to verify whether branch office expenses post-business transfer are allowable under Section 28. Issue Whether expenses incurred by a foreign company’s Indian branch office post-transfer of its business on a going-concern basis are allowable under Section 28(i)/29 of the Income-tax Act, 1961. Facts Business Transfer: The assessee, a UK company operating in India… Read More »

Provisionally attaching funds in appellant’s account is justified as unexplained RTGS credits constitute benami transactions

By | August 7, 2026
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Provisionally attaching funds in appellant’s account is justified as unexplained RTGS credits constitute benami transactions Issue Whether the Initiating Officer was justified in treating Shri Asit B. Doshi as the benamidar and the appellant as the beneficial owner under Section 2(9) of the Prohibition of Benami Property Transactions Act, 1988, and provisionally attaching funds in… Read More »

Miscellaneous Application for Rectification Under Section 254 Dismissed as No Error Found in Tribunal Stay Order

By | August 6, 2026
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Miscellaneous Application for Rectification Under Section 254 Dismissed as No Error Found in Tribunal Stay Order Issue Whether a Miscellaneous Application under Section 254(2) for rectification can be entertained to direct a refund or impose costs when the assessee points out no mistake apparent from the record in the Tribunal’s original stay order. Facts The… Read More »

Out-of-court patent settlement, business promotion, R&D expenses, and related interest are allowable revenue deductions.

By | August 6, 2026
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Out-of-court patent settlement, business promotion, R&D expenses, and related interest are allowable revenue deductions. Issue Whether out-of-court patent litigation settlement payments and interest on borrowings to fund such settlements are allowable business expenditures under section 37(1) and section 36(1)(iii). Whether TP adjustments on captive power plant transfers, AE sales, and loans/share application money can be… Read More »

Section 40(a)(i) Disallowance Upheld On MFN Withdrawal, Goodwill Depreciation, POS Charges, Software Depreciation, Section 80JJAA Allowed

By | August 6, 2026
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Section 40(a)(i) Disallowance Upheld On MFN Withdrawal, Goodwill Depreciation, POS Charges, Software Depreciation, Section 80JJAA Allowed Section 40(a)(i) Disallowance Upheld On MFN Withdrawal, Goodwill Depreciation, POS Charges, Software Depreciation, Section 80JJAA Allowed Issue Whether the disallowance under Section 40(a)(i) for export commission, depreciation on goodwill and software, revenue deduction for land development and Principal Only… Read More »

Partial Refunds Must Be Adjusted First Against Accrued Interest and Balance Against Principal Tax Component

By | August 5, 2026
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Partial Refunds Must Be Adjusted First Against Accrued Interest and Balance Against Principal Tax Component Issue Whether a partial tax refund issued by the Revenue during appellate or rectification proceedings should be adjusted first against the interest accrued up to that date under Section 244A, or directly against the principal tax component refundable to the… Read More »

Unexplained Delay in Recording Satisfaction Note Invalidates Section 153C Reassessment Proceedings Against Other Person

By | August 5, 2026
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Unexplained Delay in Recording Satisfaction Note Invalidates Section 153C Reassessment Proceedings Against Other Person Issue Whether a notice issued under Section 153C is legally valid when the Assessing Officer of the searched person delays recording the mandatory satisfaction note by 22 months after completing the search assessment, failing the “immediately after” test established by judicial… Read More »

Mandatory Interest Provisions under Sections 234C and 244A Require Factual Verification and Accurate Recomputation by AO

By | August 5, 2026
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Mandatory Interest Provisions under Sections 234C and 244A Require Factual Verification and Accurate Recomputation by AO Issue Whether the levy of deferment interest under Section 234C requires factual verification of advance tax liability and payment dates at the level of the Assessing Officer. Whether a claim regarding short grant of statutory interest on tax refund… Read More »

High Court Sets Aside Order and Remands Matter to Tribunal for Deciding Section 144B Non-Compliance

By | August 5, 2026
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High Court Sets Aside Order and Remands Matter to Tribunal for Deciding Section 144B Non-Compliance Issue Whether the Tribunal erred in confirming a 12.5% disallowance on purchases without deciding the fundamental jurisdictional issue of non-issuance of a mandatory draft show-cause notice under Section 144B(6)(xi) and without evaluating the complete documentary evidence on merits. Facts The… Read More »