Tag Archives: Deputy Commissioner of Income-tax

TNMM Trumps RPM for Distributors Performing Value-Added Services; Double Taxation Issue Remanded for AO Verification

By | August 15, 2026
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TNMM Trumps RPM for Distributors Performing Value-Added Services; Double Taxation Issue Remanded for AO Verification Issue Whether Resale Price Method (RPM) can be applied instead of Transactional Net Margin Method (TNMM) as the Most Appropriate Method (MAM) when a distributor carries out extensive post-import value additions on medical equipment. Whether an amount credited to the… Read More »

Composite Non-Compete Consideration Amortizable as Deferred Revenue and Aborted Project Expenses Fully Allowable

By | August 15, 2026
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Composite Non-Compete Consideration Amortizable as Deferred Revenue and Aborted Project Expenses Fully Allowable Issue Whether a composite consideration paid for the assignment of goodwill and restrictive non-compete covenants can be claimed as deferred revenue expenditure under Section 37(1), and whether preliminary expenses incurred for a business expansion project that was ultimately aborted are allowable as… Read More »

Expatriate Salary Paid by Foreign Head Office Exclusively for Indian PE Is Fully Allowable

By | August 15, 2026
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Expatriate Salary Paid by Foreign Head Office Exclusively for Indian PE Is Fully Allowable Issue Whether expatriate salary expenditure initially paid by a foreign bank’s Head Office for employees working exclusively for its Indian Permanent Establishment (PE) constitutes “Head Office expenditure” under Section 44C, or if it is fully allowable as a business deduction under… Read More »

Reassessment Order Involving Section 50C Is Time-Barred as Extension Under Section 142A Is Impermissible

By | August 14, 2026
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Reassessment Order Involving Section 50C Is Time-Barred as Extension Under Section 142A Is Impermissible Reassessment Order Involving Section 50C Is Time-Barred as Extension Under Section 142A Is Impermissible Issue Whether a reference to the Valuation Officer in a Section 50C matter can be made under the general provision of Section 142A to claim an extension… Read More »

Delay of Ten Months in Recording Satisfaction Note Involvalidates Section 153C Reassessment Notices

By | August 13, 2026
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Delay of Ten Months in Recording Satisfaction Note Involvalidates Section 153C Reassessment Notices Issue Whether a delay of nearly ten months in recording the satisfaction note by the Assessing Officer of the searched person after completing the search assessment invalidates the subsequent notices issued under Section 153C. Facts A search and seizure operation was conducted… Read More »

Reassessment Notice Issued Under New Regime Beyond Old Limitation Period Is Void and Without Jurisdiction

By | August 13, 2026
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Reassessment Notice Issued Under New Regime Beyond Old Limitation Period Is Void and Without Jurisdiction Reassessment Notice Issued Under New Regime Beyond Old Limitation Period Is Void and Without Jurisdiction Issue Whether a reassessment notice issued under Section 148 under the new regime (post 01.04.2021) is legally valid when the maximum time limit prescribed for… Read More »

Stamp Duty Value on Date of Agreement Applies Under Proviso to Section 50C for Unregistered Agreements

By | August 13, 2026
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Stamp Duty Value on Date of Agreement Applies Under Proviso to Section 50C for Unregistered Agreements Stamp Duty Value on Date of Agreement Applies Under Proviso to Section 50C for Unregistered Agreements Issues Applicability of Stamp Duty Value on Date of Agreement: Whether the proviso to Section 50C requires an agreement to sell to be… Read More »

Processing Return Under Section 143(1) Post Section 143(2) Notice Is Valid and ESOP Cross-Charge Expenses Are Allowable Business Deductions

By | August 13, 2026
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Processing Return Under Section 143(1) Post Section 143(2) Notice Is Valid and ESOP Cross-Charge Expenses Are Allowable Business Deductions Processing Return Under Section 143(1) Post Section 143(2) Notice Is Valid and ESOP Cross-Charge Expenses Are Allowable Business Deductions Issue Validity of Section 143(1) Processing Post Section 143(2) Notice & Doctrine of Merger: Whether processing a… Read More »

Extraordinary COVID-19 Overhead Costs Must Be Excluded as Non-Operating and TP Adjustments Must Be Restricted to AE Transactions

By | August 13, 2026
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Extraordinary COVID-19 Overhead Costs Must Be Excluded as Non-Operating and TP Adjustments Must Be Restricted to AE Transactions Issues Exclusion of Extraordinary COVID-19 Fixed Overheads: Whether extraordinary fixed overhead costs (salaries, depreciation, etc.) incurred during COVID-19 lockdown without generating operating revenue should be treated as non-operating expenses and excluded from the Profit Level Indicator (PLI)… Read More »

Penalty Under Section 270A Quashed as AO Failed to Specify Charge and Shifted Between Misreporting and Under-Reporting

By | August 12, 2026
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Penalty Under Section 270A Quashed as AO Failed to Specify Charge and Shifted Between Misreporting and Under-Reporting Issue Whether a penalty order levied under Section 270A of the Income-tax Act, 1961 is legally sustainable when the Assessing Officer fails to specify the exact charge under Section 270A(2) or Section 270A(9) in the penalty notice and… Read More »