Tag Archives: Deputy Commissioner of Income-tax

SLP granted against treating receipts as salary and disallowing interest expenses lacking business nexus.

By | August 5, 2026
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SLP granted against treating receipts as salary and disallowing interest expenses lacking business nexus. Issue Whether Special Leave Petition (SLP) should be granted against the High Court’s ruling treating director’s receipts from a company as salary rather than professional/business income due to failure to produce service agreements. Whether SLP should be granted against the disallowance… Read More »

Pending Section 154 rectification application must be decided within three months while keeping demand in abeyance.

By | August 4, 2026
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Pending Section 154 rectification application must be decided within three months while keeping demand in abeyance. Pending Section 154 rectification application must be decided within three months while keeping demand in abeyance. Issue Whether the tax authorities should be directed to decide a pending rectification application under Section 154 regarding a TDS credit mismatch within… Read More »

Assessment under Section 153C is invalid if initiated under the wrong legal standard or beyond statutory limitation limits.

By | August 4, 2026
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Assessment under Section 153C is invalid if initiated under the wrong legal standard or beyond statutory limitation limits. Issue Whether Section 153C assessment proceedings are valid when the Assessing Officer applies the superseded “belongs to” test instead of post-amendment standards, and whether assessments exceeding statutory time limits or pecuniary thresholds can be sustained. Facts The… Read More »

Cash sales backed by stock, recorded in books, and verified by GST returns cannot be treated as unexplained money under Section 69A.

By | August 4, 2026
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Cash sales backed by stock, recorded in books, and verified by GST returns cannot be treated as unexplained money under Section 69A. Issue Whether cash found during a search can be treated as unexplained money under Section 69A and taxed under Section 115BBE when the sale of goods generating such cash is fully recorded in… Read More »

Reassessment Beyond Four Years Without New Material or Non-Disclosure Is Invalid Under Section 147

By | August 4, 2026
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Reassessment Beyond Four Years Without New Material or Non-Disclosure Is Invalid Under Section 147 Reassessment Beyond Four Years Without New Material or Non-Disclosure Is Invalid Under Section 147 Issue Whether the Assessing Officer can validly reopen an assessment under Section 147 of the Income-tax Act, 1961 beyond the four-year threshold without demonstrating new tangible material… Read More »

ITAT Rules in Favor of Public Sector Bank Across Key Corporate Tax and Accounting Disallowances

By | August 4, 2026
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ITAT Rules in Favor of Public Sector Bank Across Key Corporate Tax and Accounting Disallowances ITAT Rules in Favor of Public Sector Bank Across Key Corporate Tax and Accounting Disallowances Issue FCTR Balance & Sec 43AA: Whether the opening balance of Foreign Currency Translation Reserve (FCTR) accumulated from non-integral foreign operations in preceding years can… Read More »

Reassessment issued beyond three years with Principal Commissioner approval is void ab initio.

By | August 3, 2026
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Reassessment issued beyond three years with Principal Commissioner approval is void ab initio. Issue Whether an order under Section 148A(d) and a notice under Section 148 issued after more than three years from the end of the relevant assessment year are valid when approved by the Principal Commissioner instead of the specified higher authority under… Read More »

Stamp duty valuation for Section 56(2)(x) applies based on initial allotment if banking payments occurred.

By | August 3, 2026
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Stamp duty valuation for Section 56(2)(x) applies based on initial allotment if banking payments occurred. Issue Whether an allotment letter issued by a builder—followed by partial consideration paid via banking channels—qualifies as an “agreement” for the purpose of the proviso to Section 56(2)(x)(b), entitling the assessee to adopt the stamp duty value as on the… Read More »

AO must allow consequential Section 35(2AB) relief upon DSIR revision and independently examine Section 35(1)(i) claims.

By | August 3, 2026
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AO must allow consequential Section 35(2AB) relief upon DSIR revision and independently examine Section 35(1)(i) claims. AO must allow consequential Section 35(2AB) relief upon DSIR revision and independently examine Section 35(1)(i) claims. Issue Consequential Relief on DSIR Revision: Whether an assessee is entitled to consequential weighted deduction under Section 35(2AB) if DSIR revises or enhances… Read More »

DSIR certification rules shift weighted deduction binding limits post-01.07.2016, while balance additional depreciation remains claimable in succeeding years.

By | August 3, 2026
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DSIR certification rules shift weighted deduction binding limits post-01.07.2016, while balance additional depreciation remains claimable in succeeding years. Issue R&D Weighted Deduction (Pre & Post-01.07.2016): Whether DSIR quantification in Form 3CL is binding for computing weighted deduction under Section 35(2AB) for AY 2016-17 versus AYs 2017-18 to 2018-19 following the amendment to Rule 6(7A). Additional… Read More »