Tag Archives: Deputy Commissioner of Income-tax

Gains from share transactions constitute capital gains and purchase payments to non-resident parent attracting no TDS disallowance confirmed.

By | October 8, 2026
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Gains from share transactions constitute capital gains and purchase payments to non-resident parent attracting no TDS disallowance confirmed. Issue Whether gains from the sale of shares and securities should be assessed as capital gains or business income when identical transactions in earlier years were treated as pure investments by the Tribunal. Whether payments made to… Read More »

Reassessment notices under Sections 143(2) and 142(1) issued before disposing of objections are invalid.

By | October 7, 2026
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Reassessment notices under Sections 143(2) and 142(1) issued before disposing of objections are invalid. Issue Whether Section 143(2) and Section 142(1) notices issued prior to disposing of an assessee’s objections against reassessment reasons via a speaking order are legally sustainable. Whether issuing a Section 142(1) notice within four weeks of rejecting the assessee’s objections violates… Read More »

Disallowance under Section 40(a)(ia) is unsustainable without proving single payouts exceeding threshold.

By | October 7, 2026
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Disallowance under Section 40(a)(ia) is unsustainable without proving single payouts exceeding threshold. Issue Whether Section 194B threshold applies per individual transaction or on aggregate wallet payouts, and whether promotional bonuses constitute “winnings” subject to Section 40(a)(ia) disallowance. Whether an estimated default under Section 194B can be computed using scaling metrics of prior years without identifying… Read More »

Supreme Court Dismisses Review Petition Under Section 68 As Publicly Available Documents Do Not Constitute New Evidence

By | October 6, 2026
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Supreme Court Dismisses Review Petition Under Section 68 As Publicly Available Documents Do Not Constitute New Evidence Supreme Court Dismisses Review Petition Under Section 68 As Publicly Available Documents Do Not Constitute New Evidence Issue Whether a review petition can be entertained under Order XLVII Rule 1 of the Code of Civil Procedure, 1908 to… Read More »

Reassessment Based on Change of Opinion is Impermissible and Section 201 Proceedings Do Not Bar Section 147 Action

By | October 6, 2026
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Reassessment Based on Change of Opinion is Impermissible and Section 201 Proceedings Do Not Bar Section 147 Action Issue Whether reopening an assessment on foreign remittances after considering details in original scrutiny constitutes an impermissible change of opinion, and whether pending Section 201 proceedings bar reassessment under Section 147. Facts The assessee-company, engaged in contract… Read More »

ESOP Expenditure and Out-of-Court Settlement Compensation for Right to Sue Are Allowable Business Deductions

By | October 6, 2026
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ESOP Expenditure and Out-of-Court Settlement Compensation for Right to Sue Are Allowable Business Deductions Issue Whether ESOP expenditure reimbursable to a foreign holding company is allowable under Section 37(1) during the vesting period, even if options are exercised subsequently. Whether disallowance under Section 40(a)(ia) can be sustained for non-deduction of TDS on out-of-court settlement compensation… Read More »

Individual Beneficiary Cannot Claim Trust Loss Without Prior Determination and Verification of Income or Loss in Hands of Trust

By | October 3, 2026
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Individual Beneficiary Cannot Claim Trust Loss Without Prior Determination and Verification of Income or Loss in Hands of Trust Issue Whether an individual beneficiary holding a determinate share in a private family trust can directly claim a proportionate share of the trust’s loss in his individual return when the trust itself has not filed a… Read More »

Unclaimed Pre-Approval Income Tax Demands Extinguish Upon NCLT Approval of Resolution Plan Under IBC

By | October 2, 2026
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Unclaimed Pre-Approval Income Tax Demands Extinguish Upon NCLT Approval of Resolution Plan Under IBC Issue Whether income tax demand notices issued under Section 156 in respect of claims not included in an NCLT-approved resolution plan under the Insolvency and Bankruptcy Code, 2016 are sustainable in law. Facts Resolution Plan Approval: The petitioner’s resolution plan was… Read More »

Assessee Wins Major Relief as Tribunal Upholds Deductions, Depreciation Claims, Business Interest, and Benchmark

By | October 2, 2026
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Assessee Wins Major Relief as Tribunal Upholds Deductions, Depreciation Claims, Business Interest, and Benchmark Rates Issue Whether the Tribunal erred in determining key corporate tax and transfer pricing issues for AY 2011-12, including Section 80-IA deduction eligibility for separate telecom undertakings, 60% depreciation on computer-integrated systems, block depreciation on obsolete assets, business characterization of treasury… Read More »

Interest on Borrowed Capital and Subsequent Refinancing Eligible for Section 24(b) Deduction Upon Verification

By | October 2, 2026
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Interest on Borrowed Capital and Subsequent Refinancing Eligible for Section 24(b) Deduction Upon Verification Issue Whether interest paid on borrowed funds—and subsequent refinancing thereof—utilised for the acquisition or construction of a house property is allowable as a deduction under Section 24(b), subject to verifying nexus with the property. Whether disallowance under Section 14A, read with… Read More »