Provisions of Section 43CA cannot be applied retrospectively to transactions finalized before its enactment. Issue Whether the newly inserted provisions of Section 43CA could be applied retrospectively to flat allotments made in a prior year, and whether interest costs and foreign exchange fluctuation losses incurred by a real estate developer can be claimed as period… Read More »
Bona Fide Claims Based on Prevailing Judicial Precedents Cannot Attract Penalty Due to Retrospective Legislative Amendments Issue Whether a penalty for under-reporting or misreporting of income under Section 270A can be sustained when an assessee’s bona fide claim, fully supported by prevailing judicial precedents at the time of filing, subsequently becomes inadmissible due to a… Read More »
Writ Petition Filed After Five Years Is Non-Maintainable Due To Inordinate Laches And Unavailed Alternative Statutory Remedies Issue Whether a writ petition filed under Article 226 of the Constitution challenging an appellate order is maintainable after a delay of more than five years, when the petitioner has completely bypassed an efficacious alternative statutory remedy available… Read More »
Unsecured Loan Additions Deleted upon Proving Source and Transfer Pricing Issues Remanded for Fresh Verification Unsecured Loan Additions Deleted upon Proving Source and Transfer Pricing Issues Remanded for Fresh Verification Issue Whether an addition under Section 68 can be sustained when the assessee provides comprehensive proof of the lender’s identity, creditworthiness, and source of funds.… Read More »
Assessment framed by an officer lacking jurisdiction without a Section 127 transfer order is void. Issue Whether an assessment order passed under Section 143(3) by an Assessing Officer at New Delhi is legally sustainable when jurisdiction over the assessee vest with the Assessing Officer at Mumbai, and no formal transfer order under Section 127 was… Read More »
Estimated disallowances of recorded expenses cannot be treated as unexplained expenditure under Section 69C. Estimated disallowances of recorded expenses cannot be treated as unexplained expenditure under Section 69C. Issue Whether an ad-hoc, estimated disallowance of routine business expenses already recorded in the books of accounts can legally be categorized as “unexplained expenditure” under Section 69C,… Read More »
Bogus purchase additions based on mere suspicion and estimation without book defects must be deleted. Issue Whether the Assessing Officer and the CIT(A) were justified in sustaining an addition for alleged bogus purchases based on third-party search statements, despite the assessee providing comprehensive quantitative reconciliations, direct Section 133(6) confirmations, and faultless audited books of account.… Read More »
Section 68 Addition Based On a Third-Party Slip Stood Vitiated Due To Denied Cross-Examination Section 68 Addition Based On a Third-Party Slip Stood Vitiated Due To Denied Cross-Examination Issue Whether an assessment order making an addition under Section 68 is legally sustainable when it relies entirely on a seized slip and a statement from a… Read More »
CIT(A) was justified in deleting Section 68 addition as the share sale transaction was fully substantiated. Issue Whether the Commissioner of Income-tax (Appeals) [CIT(A)] was justified in deleting an addition made by the Assessing Officer under Section 68 on account of an alleged bogus sale of unlisted equity shares by the amalgamating companies prior to… Read More »
Disallowance under Section 14A cannot exceed exempt income, and dynamic expenses lack TDS liability. Issue Whether Section 14A disallowance can exceed the actual exempt income earned during the year. Whether a bad debt write-off is allowable if the underlying income was recognized and offered to tax in a previous assessment year. Whether business disallowances under… Read More »