Tag Archives: Deputy Commissioner of Income-tax

Bogus purchase additions based on mere suspicion and estimation without book defects must be deleted.

By | June 26, 2026
0 Comment

Bogus purchase additions based on mere suspicion and estimation without book defects must be deleted. Issue Whether the Assessing Officer and the CIT(A) were justified in sustaining an addition for alleged bogus purchases based on third-party search statements, despite the assessee providing comprehensive quantitative reconciliations, direct Section 133(6) confirmations, and faultless audited books of account.… Read More »

Section 68 Addition Based On a Third-Party Slip Stood Vitiated Due To Denied Cross-Examination

By | June 26, 2026
0 Comment

Section 68 Addition Based On a Third-Party Slip Stood Vitiated Due To Denied Cross-Examination Section 68 Addition Based On a Third-Party Slip Stood Vitiated Due To Denied Cross-Examination Issue Whether an assessment order making an addition under Section 68 is legally sustainable when it relies entirely on a seized slip and a statement from a… Read More »

CIT(A) was justified in deleting Section 68 addition as the share sale transaction was fully substantiated.

By | June 26, 2026
0 Comment

CIT(A) was justified in deleting Section 68 addition as the share sale transaction was fully substantiated. Issue Whether the Commissioner of Income-tax (Appeals) [CIT(A)] was justified in deleting an addition made by the Assessing Officer under Section 68 on account of an alleged bogus sale of unlisted equity shares by the amalgamating companies prior to… Read More »

Disallowance under Section 14A cannot exceed exempt income, and dynamic expenses lack TDS liability.

By | June 26, 2026
0 Comment

Disallowance under Section 14A cannot exceed exempt income, and dynamic expenses lack TDS liability. Issue Whether Section 14A disallowance can exceed the actual exempt income earned during the year. Whether a bad debt write-off is allowable if the underlying income was recognized and offered to tax in a previous assessment year. Whether business disallowances under… Read More »

Exemption under Section 10(23EA) cannot be denied via Section 143(1) adjustments on debatable issues without prior intimation.

By | June 26, 2026
0 Comment

Exemption under Section 10(23EA) cannot be denied via Section 143(1) adjustments on debatable issues without prior intimation. Issue Whether the Central Processing Centre (CPC) is justified in making adjustments under Section 143(1) to deny an exemption under Section 10(23EA) without issuing a prior intimation of the proposed adjustment, and whether a debatable issue involving Section… Read More »

Assessment orders completed during non-pending settlement applications remain fully valid and enforceable upon application rejection.

By | June 25, 2026
0 Comment

Assessment orders completed during non-pending settlement applications remain fully valid and enforceable upon application rejection. Issue Whether assessment orders passed by an Assessing Officer are void for lack of jurisdiction or become unenforceable under sections 245HA and 153 upon the subsequent rejection of a settlement application, when those applications were filed after January 31, 2021,… Read More »

Adjustments retained in a final assessment order must be adjudicated on merits during appeals.

By | June 25, 2026
0 Comment

Adjustments retained in a final assessment order must be adjudicated on merits during appeals. Issue Whether the Commissioner (Appeals) is legally justified in refusing to decide the merits of a tax adjustment simply because the assessee did not file a separate appeal against the initial Section 143(1) intimation, even though that same adjustment was formally… Read More »

Domestic AMP spend without an agreement is not an international transaction, and business losses must be allowed for set-off.

By | June 25, 2026
0 Comment

Domestic AMP spend without an agreement is not an international transaction, and business losses must be allowed for set-off. Issue On Transfer Pricing: Whether Advertisement, Marketing, and Promotion (AMP) expenses incurred within India by a subsidiary to promote its own product sales constitute an “international transaction” under Chapter X, in the absence of an explicit… Read More »

Subsequent Section 10AA deduction disallowance via rectification order without apparent error is unsustainable.

By | June 25, 2026
0 Comment

Subsequent Section 10AA deduction disallowance via rectification order without apparent error is unsustainable. Subsequent Section 10AA deduction disallowance via rectification order without apparent error is unsustainable. Issue Whether the Central Processing Centre (CPC) is justified in completely disallowing an initially approved Section 10AA deduction of ₹20.29 crores through a rectification order under section 154, in… Read More »

DSIR-certified R&D qualifies for weighted deduction, and uncertified capital expenditure is allowed as normal deduction.

By | June 24, 2026
0 Comment

DSIR-certified R&D qualifies for weighted deduction, and uncertified capital expenditure is allowed as normal deduction. Issue Whether the Assessing Officer is required to grant the full 200% weighted deduction under Section 35(2AB) on the capital R&D expenditure certified by the DSIR in Form 3CL, rather than limiting it to 100%. Whether scientific research capital expenditure… Read More »