Issuance of a Reassessment Notice Within Limitation Is Invalid If the Revenue Fails to Prove Actual Service on the Assessee Issue Whether a reassessment order and its consequential demand notice are legally sustainable if a notice under Section 148 was “issued” within the statutory limitation period under Section 149, but the Revenue fails to provide… Read More »
Completing a Reassessment Without Disposing of Objections by a Separate Speaking Order Invalidates the Entire Assessment Issue Whether a reassessment order passed under Section 147, read with Section 143, is legally valid if the Assessing Officer (AO) completes the assessment without first disposing of the assessee’s objections to the recorded reopening reasons by a separate,… Read More »
Reassessment Cannot Be Based on Conjectures, Surmises, or Third-Party Evidence Lacking a Direct Link to the Assessee Issue Whether a reassessment notice under Section 148 and its preparatory orders under Section 148A can be legally sustained when the alleged escapement of income is based entirely on third-party digital data without establishing any direct, corroborative link… Read More »
Medical Reimbursements Up To Exempted Limit Excluded From Fringe Benefit Tax Liability Of Employer Issue Whether medical reimbursements up to the statutory limit of Rs. 15,000 per employee per annum, which are explicitly exempt from income tax in the hands of the employees, are liable to Fringe Benefit Tax (FBT) in the hands of the… Read More »
Mandatory CSR Expenditures to Registered Trusts Qualify for Section 80G Deductions and Working Capital Adjustments Preclude Separate Interest Imputation on Delayed Receivables Issue Whether an assessee can claim a tax deduction under Section 80G for corporate donations made to a registered, approved trust, even if that expenditure forms part of its mandatory Corporate Social Responsibility… Read More »
Forex Fluctions on Export Proceeds are Operating in Nature and CSR Donations Qualify for Section 80G Deductions Issue Whether foreign exchange gains/losses arising from the realization of normal export proceeds from Associated Enterprises (AEs) should be treated as operating in nature when computing the Profit Level Indicator (PLI) under the Transactional Net Margin Method (TNMM).… Read More »
AIF Investment and Processing Fees Income Cannot Be Arbitrarily Reclassified as Taxable Business Income Issue Whether the Assessing Officer was justified in re-characterizing the interest income, short-term capital gains, and processing fees of a SEBI-registered Category II Alternative Investment Fund (AIF) as business income, thereby denying tax exemption under Section 10(23FBA) read with Section 115UB… Read More »
Donations Sourced From Corporate Social Responsibility Funds Qualification Under Section 80G Are Fully Valid And Omitted Tax Credits Under Section 90 Must Be Factually Restored Donations Sourced From Corporate Social Responsibility Funds Qualification Under Section 80G Are Fully Valid And Omitted Tax Credits Under Section 90 Must Be Factually Restored Issue Whether a company can… Read More »
Corporate Social Responsibility Spend Is Eligible For Section 80G Deductions And Working Capital Adjustments Preclude Separate Interest Imputations On Outstanding Receivables Issue Whether Corporate Social Responsibility (CSR) expenditure, which is statutorily disallowed as a business expense under Section 37(1), can be claimed as a deduction under Section 80G if the donation is made to a… Read More »
Alternative Investment Fund’s Exemption Under Section 10(23FBA) Cannot Be Denied By Arbitrarily Reclassifying Investment Returns As Business Income Issue Whether the Assessing Officer was justified in re-characterizing an Alternative Investment Fund’s (AIF) interest income, short-term capital gains, and processing fees as business income to deny tax exemption under Section 10(23FBA), without applying settled judicial tests… Read More »