Tag Archives: Deputy Commissioner of Income-tax

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 »

LTCG Exempt Under Section 10(38) Cannot Be Treated as Cash Credit if Sale Is Bona Fide

By | July 22, 2026
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LTCG Exempt Under Section 10(38) Cannot Be Treated as Cash Credit if Sale Is Bona Fide Issue Whether Long Term Capital Gain (LTCG) claimed exempt under Section 10(38) on the sale of shares can be treated as bogus accommodation entry and added as cash credit under Section 68 when the transactions are backed by complete… Read More »

Section 14A Disallowance Applies Only to Yielding Investments, Non-Company CSR Allowed, Deficit Pension Contribution Fully Deductible, and Genuine Expenses Valid

By | July 22, 2026
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Section 14A Disallowance Applies Only to Yielding Investments, Non-Company CSR Allowed, Deficit Pension Contribution Fully Deductible, and Genuine Expenses Valid Section 14A Disallowance Applies Only to Yielding Investments, Non-Company CSR Allowed, Deficit Pension Contribution Fully Deductible, and Genuine Expenses Valid Issue Section 14A Portfolio Scope: Whether Section 14A read with Rule 8D disallowance must be… Read More »

Medical Reimbursements Up to ₹15,000 Are Exempt From Fringe Benefit Tax for Employers

By | July 18, 2026
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Medical Reimbursements Up to ₹15,000 Are Exempt From Fringe Benefit Tax for Employers Issue Whether medical reimbursements up to ₹15,000 per employee per annum, which are exempt from tax in the hands of the employees, are liable for Fringe Benefit Tax (FBT) in the hands of the employer under Section 115WB. Facts The case pertains… Read More »

Assessment Under Section 153C Requires Incriminating Material; Single Agricultural Land Sale Is Exempt Capital Asset.

By | July 17, 2026
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Assessment Under Section 153C Requires Incriminating Material; Single Agricultural Land Sale Is Exempt Capital Asset. Issue Whether the Revenue can validly initiate proceedings and complete an assessment under Section 153C read with Section 153A without satisfying that the seized documents are of an “incriminating” nature and legally linkable to the relevant Assessment Year. Whether a… Read More »