Tag Archives: Deputy Commissioner of Income-tax

Delayed Receivables Subsumed Under TNMM and Working Capital Adjustment Cannot Face Separate Notional Interest Imposition

By | July 2, 2026
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Delayed Receivables Subsumed Under TNMM and Working Capital Adjustment Cannot Face Separate Notional Interest Imposition Issue Whether a separate Transfer Pricing (TP) adjustment by imputing notional interest on delayed trade receivables from Associated Enterprises (AEs) is legally sustainable when the transaction has already been benchmarked under the Transactional Net Margin Method (TNMM) and a working… Read More »

Assessment is time-barred and invalid if the Assessing Officer fails to pass an order within the prescribed statutory period after a Tribunal remand.

By | June 30, 2026
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Assessment is time-barred and invalid if the Assessing Officer fails to pass an order within the prescribed statutory period after a Tribunal remand. Assessment is time-barred and invalid if the Assessing Officer fails to pass an order within the prescribed statutory period after a Tribunal remand. Issue Whether the failure of the Assessing Officer to… Read More »

Long-term capital gains from shares held for eight years cannot be treated as a sham penny stock transaction based solely on general investigation reports.

By | June 30, 2026
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Long-term capital gains from shares held for eight years cannot be treated as a sham penny stock transaction based solely on general investigation reports. Issue Whether long-term capital gains earned from the sale of shares held for over eight years can be treated as an unexplained cash credit under Section 68, and accompanied by a… Read More »

Forex losses from capital transactions are non-operating, and functionally dissimilar companies must be excluded.

By | June 30, 2026
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Forex losses from capital transactions are non-operating, and functionally dissimilar companies must be excluded. Issue Issue I & II (Section 92C): Whether foreign exchange losses arising from External Commercial Borrowings (ECBs) and capital transactions should be treated as non-operating expenses when computing the Profit Level Indicator (PLI), and whether an automotive/renewable energy component manufacturer can… Read More »

Provisions of Section 43CA cannot be applied retrospectively to transactions finalized before its enactment.

By | June 30, 2026
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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

By | June 27, 2026
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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

By | June 27, 2026
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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

By | June 27, 2026
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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.

By | June 26, 2026
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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.

By | June 26, 2026
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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 »