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 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 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. 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 »
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. 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. 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 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 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 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 »