No Penalty Under Section 271AAA Based on Presumed Sales of Unfound Stock Without Search Evidence Issue Whether penalty under Section 271AAA can be levied on an addition made for short physical stock of diamonds based on a mere presumption of unrecorded sales without any tangible evidence found during the search. Facts Search Operations: For Assessment… Read More »
Capital Gains Tax on Slump Sale Cannot Exceed Valid Valuation Without Demonstrating Defects Under Rule 11UAE Issue Whether the Assessing Officer can disregard an accountant’s report in Form 3CEA and substitute the net worth valuation under Rule 11UAE to tax the entire slump sale consideration as capital gains without pointing out specific defects or issuing… Read More »
Form 10 Filed in Time Validates Income Accumulation Regardless of Late Board Resolution Date Issue Whether an exemption under Section 11(2) for accumulation of income can be denied solely on the ground that the Board of Trustees passed the authorization resolution after the close of the financial year, even though Form 10 was filed within… Read More »
Penalty Under Section 271B Deleted as State-Funded University Exempt Under Section 10(23C)(iiiab) Needs No Tax Audit Issue Whether penalty under Section 271B can be levied on a State-funded university for failure to get its accounts audited under Section 44AB when its entire income is exempt under Section 10(23C)(iiiab). Facts Entity Status: The assessee is a… Read More »
Uncorroborated Search Statements Cannot Sustain Additions, Section 14A Disallowance Impermissible Without Exempt Income, and Multi-Issue Assessment Matters Standardized Issue Whether an uncorroborated search statement under Section 132(4) alone can sustain tax additions. Whether disallowance under Section 14A read with Rule 8D is permissible when no exempt income is earned. Whether the Assessing Officer correctly assumed… Read More »
ITAT Recalls Order and Restores Appeal as Assessee Intended Only Partial Withdrawal Under MAP Scheme ITAT Recalls Order and Restores Appeal as Assessee Intended Only Partial Withdrawal Under MAP Scheme Issue Whether the Appellate Tribunal should recall its earlier order and restore an appeal under Section 254(2) when an order dismissing the entire appeal as… Read More »
PBDIT Adopted as PLI for Heavy Fixed Asset Investments and Mandatory Loss Set-Off Upheld Issue Selection of Profit Level Indicator (PLI): Whether Profit Before Depreciation, Interest, and Tax (PBDIT) should be adopted as the most appropriate PLI under TNMM when an assessee’s net profit is significantly affected by high depreciation resulting from substantial investments in… Read More »
ITAT Remands Ex-Parte Assessment of Unexplained Cash Credits to AO for Fresh Consideration Subject to Payment of ₹1 Lakh Cost Issue Whether an ex-parte assessment making substantial additions for unexplained cash credits under Section 68 and ad-hoc expenditure disallowances under Section 144/144B can be remanded to the Assessing Officer for de-novo consideration when the assessee… Read More »
No Transfer Pricing Adjustments Permissible for Non-Existent Real Income from Bankrupt AEs or Inapplicable Valuation Mandates Issue Notional Interest on Quasi-Equity OFCDs: Whether transfer pricing provisions permit imputing notional interest on quasi-equity OFCDs where realization is uncertain and unrecognized under accounting principles. Interest Imputation on Invoked Corporate Guarantee Payments: Whether paying an invoked guarantee for… Read More »
ITAT Upholds Income Recognition and Disallowance Deletions for Agency Firm, Restricting Specific Expenses and Reclassifying Capital Outgo ITAT Upholds Income Recognition and Disallowance Deletions for Agency Firm, Restricting Specific Expenses and Reclassifying Capital Outgo Issues Shortfall in Opening Deposit Liability & Income Recognition: Whether income of an agent firm recognized on the basis of an… Read More »