Tag Archives: Deputy Commissioner of Income-tax

Notice Under Section 143(2) Is Not Mandatory in Reassessment and Scope Extends Beyond Recorded Reasons

By | August 12, 2026
0 Comment

Notice Under Section 143(2) Is Not Mandatory in Reassessment and Scope Extends Beyond Recorded Reasons Issue Whether the issuance of a notice under Section 143(2) is mandatory in reassessment proceedings under Section 147 when the taxpayer participates in the proceedings and statutory timeline constraints render issuance impossible. Whether the Assessing Officer during reassessment proceedings under… Read More »

Addition Made Solely on Survey Statement Without Corroborative Material Under Section 68 Is Unsustainable

By | August 12, 2026
0 Comment

Addition Made Solely on Survey Statement Without Corroborative Material Under Section 68 Is Unsustainable Issue Whether an addition made under Section 68 of the Income-tax Act, 1961 solely on the basis of a statement recorded during a survey under Section 133A, without any independent corroborative evidence, is legally sustainable. Facts Business & Survey: The assessee-company,… Read More »

Taxability of Written-Back Provisions Depends on Prior Deductions while Refunds Granted Must Be First Adjusted Against Interest

By | August 12, 2026
0 Comment

Taxability of Written-Back Provisions Depends on Prior Deductions while Refunds Granted Must Be First Adjusted Against Interest Issue Whether written-back employee benefit provisions are taxable under Section 41(1) if they were not allowed as deductions in earlier assessment years. Whether interest under Section 234D on excess refund requires recomputation following modifications to the assessment by… Read More »

Penalty Under Section 270A Is Unsustainable Once Underlying Assessment Order and FTS Adjustment Are Quashed

By | August 11, 2026
0 Comment

Penalty Under Section 270A Is Unsustainable Once Underlying Assessment Order and FTS Adjustment Are Quashed Penalty Under Section 270A Is Unsustainable Once Underlying Assessment Order and FTS Adjustment Are Quashed Issue Whether a penalty under Section 270A for misreporting of income can be sustained when the underlying assessment order and Fee for Technical Services (FTS)… Read More »

Corporate Guarantee Settlement Liability Crystallized in Previous Year 1997-98 Is Deductible Business Expenditure Under Section 37(1)

By | August 11, 2026
0 Comment

Corporate Guarantee Settlement Liability Crystallized in Previous Year 1997-98 Is Deductible Business Expenditure Under Section 37(1) Issue Whether the liability of ₹3.50 crores incurred by the assessee-company pursuant to a corporate guarantee settlement crystallized in the previous year 1997-98, making it an allowable business expenditure under Section 37(1) for the Assessment Year 1998-99. Facts Corporate… Read More »

Share Premium Valuations Under Rule 11UA and Bona Fide Service Payments Are Non-Taxable Business Expenses

By | August 11, 2026
0 Comment

Share Premium Valuations Under Rule 11UA and Bona Fide Service Payments Are Non-Taxable Business Expenses Issue Whether tax authorities can reject a DCF valuation carried out under Rule 11UA for CCPS issued under Section 56(2)(viib), whether conversion of earlier CCPS into equity or unevidenced management fee reversals trigger additions, and whether service payments with assured… Read More »

CBDT Instruction No. 01/2022 and Section 148 notice for AY 2015-16 issued within TOLA limitation are valid.

By | August 10, 2026
0 Comment

CBDT Instruction No. 01/2022 and Section 148 notice for AY 2015-16 issued within TOLA limitation are valid. Issue Whether CBDT Instruction No. 01/2022, issued to implement the Supreme Court judgment in Union of India v. Ashish Agarwal, is legally valid. Whether an order under Section 148A(d) and a reassessment notice under Section 148 issued on… Read More »

Ex-gratia under BSNL Voluntary Retirement Scheme is capital receipt exempt as retrenchment compensation under Section 10(10B).

By | August 10, 2026
0 Comment

Ex-gratia under BSNL Voluntary Retirement Scheme is capital receipt exempt as retrenchment compensation under Section 10(10B). Issue Whether ex-gratia compensation received by BSNL employees under the BSNL Voluntary Retirement Scheme, 2019 constitutes retrenchment compensation under Section 10(10B) and is fully exempt from tax as a capital receipt, rather than being restricted to the Rs. 5… Read More »

Surplus from transfer of restored development rights is taxable as capital gains, not business income.

By | August 7, 2026
0 Comment

Surplus from transfer of restored development rights is taxable as capital gains, not business income. Issue Whether gains from the transfer of restored development rights following JDA termination are taxable as capital gains or business income, whether such receipts are exempt capital receipts, and whether connected disallowances under Section 40(a)(ia) and claims for encroachment settlement… Read More »

Matter remanded to verify whether branch office expenses post-business transfer are allowable under Section 28.

By | August 7, 2026
0 Comment

Matter remanded to verify whether branch office expenses post-business transfer are allowable under Section 28. Issue Whether expenses incurred by a foreign company’s Indian branch office post-transfer of its business on a going-concern basis are allowable under Section 28(i)/29 of the Income-tax Act, 1961. Facts Business Transfer: The assessee, a UK company operating in India… Read More »