Tag Archives: Deputy Commissioner of Income-tax

NaFAC and JAO hold valid jurisdiction for faceless reassessments, but natural justice demands remanding ex-parte additions due to assessee’s mental illness.

By | September 2, 2026
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NaFAC and JAO hold valid jurisdiction for faceless reassessments, but natural justice demands remanding ex-parte additions due to assessee’s mental illness. Issue Whether National Faceless Assessment Centre (NaFAC) and Jurisdiction Assessment Officer (JAO) possess valid jurisdiction under Section 144B and Section 151A read with CBDT circulars/notifications to conduct faceless reassessment proceedings under Section 147 of… Read More »

MEIS export scheme benefits offset operational costs and are taxable as revenue receipts under Section 2(24)(xviii).

By | September 2, 2026
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MEIS export scheme benefits offset operational costs and are taxable as revenue receipts under Section 2(24)(xviii). Issue Whether benefits/rewards received by an assessee under the Merchandise Exports from India Scheme (MEIS) of the Foreign Trade Policy 2015 constitute capital receipts or taxable revenue receipts in light of the purpose test and the insertion of Section… Read More »

Exemption under Section 54F is allowable on both purchase and post-purchase reconstruction expenses incurred to make a house habitable.

By | September 2, 2026
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Exemption under Section 54F is allowable on both purchase and post-purchase reconstruction expenses incurred to make a house habitable. Issue Whether capital gains exemption under Section 54F of the Income-tax Act, 1961 (corresponding to Section 86 of the Income-tax Act, 2025) extends to post-purchase construction, renovation, and demolition expenses incurred to make a residential house… Read More »

Depreciation Claimed on Non-Compete Fees Is Unsustainable, But Goodwill Arising from Slump Sale Qualifies for Depreciation

By | September 2, 2026
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Depreciation Claimed on Non-Compete Fees Is Unsustainable, But Goodwill Arising from Slump Sale Qualifies for Depreciation Issue Whether depreciation can be claimed under Section 32 on non-compete fees recognized during a slump sale, or if it must be treated strictly as revenue expenditure under Section 37(1). Whether sixth proviso to Section 32(1), Explanation 7 to… Read More »

Deletion of secondary TP adjustments, adoption of LIBOR benchmarking, and statutory disallowance of education cess.

By | August 31, 2026
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Deletion of secondary TP adjustments, adoption of LIBOR benchmarking, and statutory disallowance of education cess. Issue Whether transfer pricing adjustments on exclusivity/transition payments, benchmarking of foreign currency loans, Section 14A disallowances, Section 10A export turnover calculations, TDS credit entitlement, and education cess deductions are sustainable under the Income-tax Act. Facts TP Adjustments on Interest: The… Read More »

TP Adjustments on Aggregated Royalty, Intra-Group Services, and Receivables Deleted while Working Capital Adjustment Remanded

By | August 29, 2026
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TP Adjustments on Aggregated Royalty, Intra-Group Services, and Receivables Deleted while Working Capital Adjustment Remanded Issue Whether transfer pricing adjustments concerning operating cost items, turnover filters, comparable selections across segments, notional interest on delayed receivables, aggregated royalty payments, intra-group service charges, working capital adjustments, and non-TDS disallowances under section 40(a)(ia) are legally sustainable for AY… Read More »

DDT on Dividends to Non-Residents Restricted to DTAA Rates; Corporate Club Membership Fees Fully Allowable

By | August 29, 2026
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DDT on Dividends to Non-Residents Restricted to DTAA Rates; Corporate Club Membership Fees Fully Allowable Issue Whether Dividend Distribution Tax (DDT) under section 115-O on dividends paid to non-resident shareholders is capped by DTAA rates, and whether corporate club membership fees qualify as allowable business expenditure under section 37(1). Facts DDT on Foreign Shareholders (AYs… Read More »

TP Adjustments, 80-IA Deductions, and Section 14A Disallowance Deleted; Power Benchmarking, Cess, and Interest Remanded

By | August 29, 2026
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TP Adjustments, 80-IA Deductions, and Section 14A Disallowance Deleted; Power Benchmarking, Cess, and Interest Remanded Issue Whether transfer pricing adjustments on cost allocations, external CUP benchmarking for power transfer, section 80-IA disallowances, section 14A additions without exempt income, MAT cess adjustments, and section 234A interest levies are legally sustainable for AY 2020-21. Facts TP Adjustment… Read More »

Identical Transfer Pricing Adjustments on Management Fees Deleted Following Consistent ITAT Precedents in Assessee’s Own Case

By | August 28, 2026
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Identical Transfer Pricing Adjustments on Management Fees Deleted Following Consistent ITAT Precedents in Assessee’s Own Case Issue Whether a transfer pricing adjustment made on the payment of management fees to an Associated Enterprise (AE) is sustainable when identical adjustments in earlier assessment years were deleted by the Tribunal. Facts Assessee Business: The assessee-company is engaged… Read More »

CIT(A) cannot issue conditional remand directions without conclusively deciding penalty for bona fide error

By | August 27, 2026
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CIT(A) cannot issue conditional remand directions without conclusively deciding penalty for bona fide error Issue Whether the CIT(A)/NFAC exceeded jurisdiction under Section 251(1)(b) by issuing a conditional direction to the Assessing Officer while failing to conclusively decide if the reporting difference was a bona fide clerical error under Section 270A(6)(a). Facts Assessee made a provision… Read More »