Tag Archives: Deputy Commissioner of Income-tax

Reversal of previously taxed bonus provisions and accrued year-end brokerage liabilities are deductible business expenses.

By | July 16, 2026
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Reversal of previously taxed bonus provisions and accrued year-end brokerage liabilities are deductible business expenses. Reversal of previously taxed bonus provisions and accrued year-end brokerage liabilities are deductible business expenses. Issue Whether an income-tax deduction is permissible for the reversal of a bonus provision that had already been subjected to tax in preceding years under… Read More »

Availability of sufficient interest-free funds creates a legal presumption that investments were made out of them.

By | July 16, 2026
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Availability of sufficient interest-free funds creates a legal presumption that investments were made out of them. Availability of sufficient interest-free funds creates a legal presumption that investments were made out of them. Issue Whether a disallowance of interest under section 36(1)(iii) of the Income-tax Act, 1961 is legally sustainable when the assessee possesses mixed funds… Read More »

Direct payment of rent by employer after salary recovery does not disentitle assessee to House Rent Allowance exemption.

By | July 16, 2026
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Direct payment of rent by employer after salary recovery does not disentitle assessee to House Rent Allowance exemption. Direct payment of rent by employer after salary recovery does not disentitle assessee to House Rent Allowance exemption. Issue Whether an employee is disentitled to House Rent Allowance (HRA) exemption under section 10(13A) of the Income-tax Act,… Read More »

No Penalty Lies for Non-Reporting of PE-Unrelated Transactions and CIT(A) Cannot Enhance on New Grounds

By | July 15, 2026
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No Penalty Lies for Non-Reporting of PE-Unrelated Transactions and CIT(A) Cannot Enhance on New Grounds Issue Issue I (Section 271AA Penalty): Whether a transfer pricing penalty under Section 271AA for non-reporting of an international transaction is sustainable when the transaction was executed directly by the foreign head office without any effective nexus to its Indian… Read More »

Google AdWords Payments Cover Under Section 194C as Advertising Rather Than Technical Services

By | July 11, 2026
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Google AdWords Payments Cover Under Section 194C as Advertising Rather Than Technical Services Issue Whether payments made to Google India for the Google AdWords program constitute “fees for technical services” under Section 194J requiring human intervention, or are standard advertising contracts subject to tax deduction at source at the lower rate under Section 194C. Facts… Read More »

Surrender of Allotment Right in Immovable Property Constitutes Transfer of Capital Asset Generating Capital Gains

By | July 11, 2026
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Surrender of Allotment Right in Immovable Property Constitutes Transfer of Capital Asset Generating Capital Gains Issue Whether the right to obtain conveyance of an immovable property under an allotment letter constitutes a “capital asset” under Section 2(14) of the Income-tax Act, and whether compensation received upon its surrender constitutes a “transfer” under Section 2(47), making… Read More »

Capital gains are taxable on the execution date of the registered sale agreement for the absolute owner.

By | July 10, 2026
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Capital gains are taxable on the execution date of the registered sale agreement for the absolute owner. Issue Whether the long-term capital gains from the sale of an immovable property are taxable in the assessment year matching the execution date of a registered agreement to sell, or in the subsequent year when the full consideration… Read More »

Sales tax incentive received as a capital receipt is excluded from normal income and Section 115JB book profits.

By | July 9, 2026
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Sales tax incentive received as a capital receipt is excluded from normal income and Section 115JB book profits. Issue Whether a recurring sales tax incentive/subsidy received by the assessee constitutes a non-taxable capital receipt that must be excluded from both the regular income computation under Section 28(i) and the book profit computation under Section 115JB.… Read More »

Inter-trust transfers out of accumulated funds are strictly taxable as deemed income regardless of project nomenclature.

By | July 6, 2026
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Inter-trust transfers out of accumulated funds are strictly taxable as deemed income regardless of project nomenclature. Issue Whether payments made out of accumulated income under Section 11(2) by a charitable trust to other Section 12AA-registered institutions for project implementation are hit by the restriction in Section 11(3)(d) and taxable as deemed income. Facts Income Accumulation:… Read More »

Assessment under section 153C is void if the satisfaction note is recorded after April 1, 2021.

By | July 4, 2026
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Assessment under section 153C is void if the satisfaction note is recorded after April 1, 2021. Issue Whether the assessment orders framed under Section 153C for the assessment years 2013-14 and 2014-15 are legally valid, given that the Assessing Officer’s satisfaction note was recorded after April 1, 2021, shifting the deemed date of search for… Read More »