Tag Archives: Deputy Commissioner of Income-tax

Procedural Invalidity of Search Assessments under Section 143(3) and Key Substantive Reliefs Granted to Assessee

By | September 7, 2026
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Procedural Invalidity of Search Assessments under Section 143(3) and Key Substantive Reliefs Granted to Assessee Issue Whether post-search assessments completed under Section 143(3) instead of Section 148 are valid, and whether additions regarding unexplained money, unsecured loans, transfer pricing adjustments, section 14A disallowance, rent, and section 80-IB deductions are legally sustainable. Facts Search Assessment Procedure:… Read More »

Deduction allowed under Section 80IB cannot be reduced while computing deduction under Section 80HHC.

By | September 5, 2026
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Deduction allowed under Section 80IB cannot be reduced while computing deduction under Section 80HHC. Issue Whether the Assessing Officer was justified in reducing the deduction already allowed under Section 80IB from the eligible profits while computing the deduction available under Section 80HHC of the Income-tax Act, 1961. Facts Assessee Profile: The assessee is a public… Read More »

ITAT deletes transfer pricing royalty adjustment, disallowances under section 14A and section 40(a)(i), remanding other issues.

By | September 5, 2026
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ITAT deletes transfer pricing royalty adjustment, disallowances under section 14A and section 40(a)(i), remanding other issues. Issue Whether transfer pricing adjustments on royalty and commission, capital gains indexation, section 54G additional exemption claims, overseas commission withholding taxes, and section 14A disallowance are sustainable. Facts Royalty TP Adjustment (AY 2012-13 & 2013-14): Assessee paid an 8%… Read More »

ITAT partial relief to bank on actuarial liabilities, NPA interest, and MAT applicability issues.

By | September 5, 2026
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ITAT partial relief to bank on actuarial liabilities, NPA interest, and MAT applicability issues. ITAT partial relief to bank on actuarial liabilities, NPA interest, and MAT applicability issues. Issues Whether actuarially determined provisions for employee benefits (pension, leave, and long-term awards) constitute allowable accrued business expenditure. Whether Section 14A disallowance applies only to investments yielding… Read More »

Provisional Attachment Upheld as Fund Transfer for Alleged Gold Sale During Demonetization Constituted Benami Transaction

By | September 5, 2026
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Provisional Attachment Upheld as Fund Transfer for Alleged Gold Sale During Demonetization Constituted Benami Transaction Provisional Attachment Upheld as Fund Transfer for Alleged Gold Sale During Demonetization Constituted Benami Transaction Issue Whether the receipt of ₹25 lakhs via RTGS from a benami entity’s bank account—allegedly towards the sale of gold without proper KYC, delivery proof,… Read More »

No TDS obligation triggers on estimated year-end provisions reversed next year without identified payees, nor under Section 201 if expenditure is disallowed under Section 40(a)(ia).

By | September 4, 2026
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No TDS obligation triggers on estimated year-end provisions reversed next year without identified payees, nor under Section 201 if expenditure is disallowed under Section 40(a)(ia). Issue Whether an assessee can be treated as an “assessee-in-default” under Section 201(1) for non-deduction of TDS on temporary, estimated year-end provisions that lack identified payees and are reversed in… Read More »

Ad-hoc expense disallowances remanded for fresh verification while provision for bad debts allowed.

By | September 4, 2026
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Ad-hoc expense disallowances remanded for fresh verification while provision for bad debts allowed. Issue Whether ad-hoc 10% disallowance of promotional expenses, disallowance of bad debts provision, unserved Section 143 intimation-based income enhancements, and consequential interest and penalty levies under Section 234A/270A are legally sustainable. Facts Ad-Hoc Expense Disallowance: The Assessing Officer (AO) made an ad-hoc… Read More »

Recurring digital marketing and routine IT service expenses are revenue expenditure, fully deductible under Section 37(1).

By | September 4, 2026
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Recurring digital marketing and routine IT service expenses are revenue expenditure, fully deductible under Section 37(1). Issue Whether routine expenses incurred on digital sales promotion (SEO, content generation, media management) and user-experience IT services (search optimization and auto-correct functions) constitute capital expenditure or allowable revenue expenditure under Section 37(1). Facts The assessee-company distributes financial service… Read More »

Provision for bad debts is allowable, and income enhancement without serving Section 143 intimation is illegal.

By | September 4, 2026
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Provision for bad debts is allowable, and income enhancement without serving Section 143 intimation is illegal. Issue Whether a deduction for the provision for bad and doubtful debts under Section 36(1)(vii) is allowable, and whether an enhancement of returned income based on an unserved Section 143 intimation is legally sustainable. Facts Deduction for Bad Debts:… Read More »

Statutory Refund Adjustment Priority Requires Clearing Accrued Section 244A Interest Before Appropriating Principal Tax

By | September 2, 2026
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Statutory Refund Adjustment Priority Requires Clearing Accrued Section 244A Interest Before Appropriating Principal Tax Issue Whether the Revenue is required to adjust the interest component first before appropriating the principal tax amount while crediting a refund to the assessee under Section 244A of the Income-tax Act, 1961 (Section 437 of the Income-tax Act, 2025). Facts… Read More »