Tag Archives: Deputy Commissioner of Income-tax

Exemption under Section 10(23EA) cannot be denied via Section 143(1) adjustments on debatable issues without prior intimation.

By | June 26, 2026
0 Comment

Exemption under Section 10(23EA) cannot be denied via Section 143(1) adjustments on debatable issues without prior intimation. Issue Whether the Central Processing Centre (CPC) is justified in making adjustments under Section 143(1) to deny an exemption under Section 10(23EA) without issuing a prior intimation of the proposed adjustment, and whether a debatable issue involving Section… Read More »

Assessment orders completed during non-pending settlement applications remain fully valid and enforceable upon application rejection.

By | June 25, 2026
0 Comment

Assessment orders completed during non-pending settlement applications remain fully valid and enforceable upon application rejection. Issue Whether assessment orders passed by an Assessing Officer are void for lack of jurisdiction or become unenforceable under sections 245HA and 153 upon the subsequent rejection of a settlement application, when those applications were filed after January 31, 2021,… Read More »

Adjustments retained in a final assessment order must be adjudicated on merits during appeals.

By | June 25, 2026
0 Comment

Adjustments retained in a final assessment order must be adjudicated on merits during appeals. Issue Whether the Commissioner (Appeals) is legally justified in refusing to decide the merits of a tax adjustment simply because the assessee did not file a separate appeal against the initial Section 143(1) intimation, even though that same adjustment was formally… Read More »

Domestic AMP spend without an agreement is not an international transaction, and business losses must be allowed for set-off.

By | June 25, 2026
0 Comment

Domestic AMP spend without an agreement is not an international transaction, and business losses must be allowed for set-off. Issue On Transfer Pricing: Whether Advertisement, Marketing, and Promotion (AMP) expenses incurred within India by a subsidiary to promote its own product sales constitute an “international transaction” under Chapter X, in the absence of an explicit… Read More »

Subsequent Section 10AA deduction disallowance via rectification order without apparent error is unsustainable.

By | June 25, 2026
0 Comment

Subsequent Section 10AA deduction disallowance via rectification order without apparent error is unsustainable. Subsequent Section 10AA deduction disallowance via rectification order without apparent error is unsustainable. Issue Whether the Central Processing Centre (CPC) is justified in completely disallowing an initially approved Section 10AA deduction of ₹20.29 crores through a rectification order under section 154, in… Read More »

DSIR-certified R&D qualifies for weighted deduction, and uncertified capital expenditure is allowed as normal deduction.

By | June 24, 2026
0 Comment

DSIR-certified R&D qualifies for weighted deduction, and uncertified capital expenditure is allowed as normal deduction. Issue Whether the Assessing Officer is required to grant the full 200% weighted deduction under Section 35(2AB) on the capital R&D expenditure certified by the DSIR in Form 3CL, rather than limiting it to 100%. Whether scientific research capital expenditure… Read More »

Orders Denying Capital Gains Exemption Set Aside for Failure to Consider Alternative Section 54EB Claim

By | June 23, 2026
0 Comment

Orders Denying Capital Gains Exemption Set Aside for Failure to Consider Alternative Section 54EB Claim Issue Whether the tax authorities’ blanket denial of a capital gains exemption constituted a non-application of mind because they failed to consider the assessee’s alternative request to evaluate the reinvested long-term capital gains under Section 54EB after Section 54B was… Read More »

TPO cannot value actual intra-group services at ‘Nil’ based on a subjective ‘benefit test’, and sequential commercial disallowance under section 37(1) cannot survive if the TP adjustment is deleted.

By | June 22, 2026
0 Comment

TPO cannot value actual intra-group services at ‘Nil’ based on a subjective ‘benefit test’, and sequential commercial disallowance under section 37(1) cannot survive if the TP adjustment is deleted. Issue Whether the Transfer Pricing Officer (TPO) was legally justified in determining the Arm’s Length Price (ALP) of intra-group services at ‘Nil’ based on a subjective… Read More »

Corporate guarantee fees at 1% upheld; bad debts actual write-off and lease rentals allowed as revenue expense.

By | June 22, 2026
0 Comment

Corporate guarantee fees at 1% upheld; bad debts actual write-off and lease rentals allowed as revenue expense. Issue Whether the TPO was justified in benchmarking a free corporate guarantee given to an overseas AE at an ALP of 1%, and whether the AO erred in disallowing an actual bad debt write-off and the principal component… Read More »

Assessee blocks uncorroborated search additions, but stock deficits and unproven HUF rents stand.

By | June 22, 2026
0 Comment

Assessee blocks uncorroborated search additions, but stock deficits and unproven HUF rents stand. Issue Whether search-and-seizure-based additions concerning alleged on-money payments, unrecorded loose-paper transactions, protective gross profit adjustments, stock deficiencies, unaccounted purchases/sales, and unverified rental income claims are legally sustainable under the provisions of the Income-tax Act? Facts On-money & Third-Party Sheets (I & II):… Read More »