Tag Archives: Deputy Commissioner of Income-tax

Addition Under Section 68 Unjustified as Demonetization Cash Deposits Were Supported by Verified Bullion Sales

By | October 17, 2026
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Addition Under Section 68 Unjustified as Demonetization Cash Deposits Were Supported by Verified Bullion Sales Issue Whether cash deposits made during the demonetization period out of recorded bullion and jewellery sales can be treated as unexplained cash credit under Section 68 read with Section 115BBE when stock records, purchases, and sales remain undisputed. Facts Business… Read More »

Interim Board Settlement Applications Valid If Live Assessment Notice Pending On Filing Date

By | October 16, 2026
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Interim Board Settlement Applications Valid If Live Assessment Notice Pending On Filing Date Issue Whether the Interim Board for Settlement can reject a settlement application filed on or before September 30, 2021, on the ground that no assessment proceeding was pending as on January 31, 2021, even though the assessee held a live and unadjudicated… Read More »

Additions under Sections 68, 69D, 50CA, and 271D deleted as transactions were verified and recorded.

By | October 15, 2026
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Additions under Sections 68, 69D, 50CA, and 271D deleted as transactions were verified and recorded. Issue Unsecured Loans (Section 68): Whether additions for unsecured loans under Section 68 can be sustained when the assessee provides PAN, audited financials, confirmations, bank statements, and evidence of repayment with interest after TDS. Ad-Hoc Disallowance of Contractual Payments (Section… Read More »

Unexecuted template agreements cannot serve as CUP comparables, and routine business expenses including RSUs, IT support, and promotions are allowable.

By | October 15, 2026
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Unexecuted template agreements cannot serve as CUP comparables, and routine business expenses including RSUs, IT support, and promotions are allowable. Issue Transfer Pricing of Royalty: Whether unexecuted template agreements can be applied under the CUP method to benchmark royalty payments, and whether purchase and royalty transactions can be aggregated under the Resale Price Method (RPM).… Read More »

Management fees earned from UAR PE are DTAA exempt and statutory book profit adjustments sustained.

By | October 15, 2026
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Management fees earned from UAR PE are DTAA exempt and statutory book profit adjustments sustained. Issue Taxability of UAR Management Fees: Whether management fees earned from Hotel Meena House Oberoi, Cairo, are exempt from tax in India under Article 24 read with Article 7 of the India-UAR DTAA based on the existence of a Permanent… Read More »

Reassessment Notice Issued Beyond Statutory Limitation Period Under First Proviso to Section 149(1) Is Void

By | October 14, 2026
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Reassessment Notice Issued Beyond Statutory Limitation Period Under First Proviso to Section 149(1) Is Void Reassessment Notice Issued Beyond Statutory Limitation Period Under First Proviso to Section 149(1) Is Void Issue Whether a reassessment notice issued under Section 148 on 20.03.2024 for Assessment Year 2015-16 is barred by limitation under the first proviso to Section… Read More »

Amalgamated Company Entitled to Carry Forward and Set Off MAT Credit of Amalgamating Entities

By | October 14, 2026
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Amalgamated Company Entitled to Carry Forward and Set Off MAT Credit of Amalgamating Entities Issue Whether an amalgamated company is entitled to carry forward and set off unutilised Minimum Alternate Tax (MAT) credit under Section 115JAA pertaining to amalgamating companies pursuant to an NCLT-sanctioned scheme of amalgamation. Facts The assessee-company amalgamated eleven group companies with… Read More »

Corporate guarantee to AE is an international transaction ineligible for Section 80-IAB deduction.

By | October 14, 2026
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Corporate guarantee to AE is an international transaction ineligible for Section 80-IAB deduction. Issue Corporate Guarantee as International Transaction: Whether providing an irrevocable and unconditional corporate guarantee to an Associated Enterprise (AE) constitutes an “international transaction” requiring determination of the Arm’s Length Price (ALP). Eligibility for Section 80-IAB Deduction: Whether a corporate guarantee fee (or… Read More »

Reassessment notice issued beyond limitation without unrecorded income revelation and on taxed demerged business income is invalid

By | October 13, 2026
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Reassessment notice issued beyond limitation without unrecorded income revelation and on taxed demerged business income is invalid Issue Whether information on the Insight portal regarding transactions already disclosed and taxed in the hands of a resulting post-demerger company constitutes valid “information” indicating income escapement under Section 148. Whether passing an order under Section 148A(d) for… Read More »

Transit insurance claims, provisions reversed, and non-resident fees qualify for section 80-IC deduction or exemption, whereas vendor penalties do not.

By | October 13, 2026
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Transit insurance claims, provisions reversed, and non-resident fees qualify for section 80-IC deduction or exemption, whereas vendor penalties do not. Issue Issue 1: Whether transit insurance claim receipts for loss or damage to operational assets are profits derived from an eligible industrial undertaking qualifying for deduction under Section 80-IC. Issue 2: Whether the reversal of… Read More »