Section 14A disallowance cannot be sustained without changed facts when Revenue accepted earlier years’ orders. Issue Whether the disallowance under Section 14A read with Rule 8D by attributing salary expenses is sustainable when identical issues were decided in favor of the assessee in preceding assessment years and accepted by the Revenue without further appeal. Facts… Read More »
Reassessment Under Section 148 Based on Non-Deduction of TDS and Written-Off Advances Is Invalid Due to Change of Opinion Reassessment Under Section 148 Based on Non-Deduction of TDS and Written-Off Advances Is Invalid Due to Change of Opinion Issue Whether issuance of a reassessment notice under Section 148 after four years is valid when the… Read More »
ITAT Remands Defect Liability Expense Issue and Allows Bad Debts and PF/ESI Deductions Issue Whether expenses incurred during a contractual Defect Liability Period (DLP) are allowable under Section 37(1), bad debts written off meet the criteria under Section 36(1)(vii), and employees’ PF/ESI contributions deposited within statutory due dates are allowable under Section 36(1)(va). Facts Defect… Read More »
Opening WDV depreciation, advance subscription revenue, and inherited slump sale interest cannot be disallowed. Issue Depreciation on Intangibles: Whether depreciation can be denied on the opening Written Down Value (WDV) of a block of intangible assets under Section 43(6)(c) when it was duly examined and allowed in the preceding assessment year. Accrual of Advance Revenue:… Read More »
Write-off of Expired Inventory and Bad Debts Supported by Evidence Is Allowable Issue Whether the write-off of expired finished goods inventory under Section 37(1) is allowable as a business expenditure when supported by physical verification and destruction norms. Whether the write-off of bad debts under Section 36 is allowable when substantiated by debtor details, sale… Read More »
Disallowance of Intangible Asset Depreciation on Opening WDV, Unearned Advance Subscription Revenue, and Interest on Inherited Slump-Sale Borrowings Is Impermissible Without Rebuttal or Finding of Unreasonableness Disallowance of Intangible Asset Depreciation on Opening WDV, Unearned Advance Subscription Revenue, and Interest on Inherited Slump-Sale Borrowings Is Impermissible Without Rebuttal or Finding of Unreasonableness Issue Whether depreciation… Read More »
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 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 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 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 »