Tag Archives: Deputy Commissioner of Income-tax

AO cannot impose a 200% misreporting penalty under Section 270A without specifying the exact statutory clause breached, especially when the taxpayer acted on a bona fide reliance on Form 16.

By | June 19, 2026
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AO cannot impose a 200% misreporting penalty under Section 270A without specifying the exact statutory clause breached, especially when the taxpayer acted on a bona fide reliance on Form 16. Issue Whether a 200% penalty for misreporting under Section 270A can be legally sustained when the Assessing Officer (AO) fails to specify the exact statutory… Read More »

Adjusting substantial tax refunds against a disputed demand without a prior Section 245 intimation is unlawful when the taxpayer has already deposited the mandatory 20% amount.

By | June 19, 2026
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Adjusting substantial tax refunds against a disputed demand without a prior Section 245 intimation is unlawful when the taxpayer has already deposited the mandatory 20% amount. Adjusting substantial tax refunds against a disputed demand without a prior Section 245 intimation is unlawful when the taxpayer has already deposited the mandatory 20% amount. Issue Whether the… Read More »

Notional interest on interest-free loans to a non-viable subsidiary cannot be taxed under the real income principle.

By | June 19, 2026
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Notional interest on interest-free loans to a non-viable subsidiary cannot be taxed under the real income principle. Issue Whether the tax authorities are justified in adding and taxing notional interest under Section 5 on long-term interest-free advances given to a non-viable subsidiary company, when both entities agreed not to charge interest and judicial consistency supports… Read More »

Common Area Maintenance (CAM) Charges Property Expenses Are Governing Under Section 194C as Contractual Work, Not Under Section 194I as Rent

By | June 18, 2026
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Common Area Maintenance (CAM) Charges Property Expenses Are Governing Under Section 194C as Contractual Work, Not Under Section 194I as Rent Issue Whether Common Area Maintenance (CAM) charges paid by a tenant under a lease agreement are liable for Tax Deduction at Source (TDS) at the rate of 10% as “Rent” under Section 194I, or… Read More »

Issuance of a Reassessment Notice Within Limitation Is Invalid If the Revenue Fails to Prove Actual Service on the Assessee

By | June 18, 2026
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Issuance of a Reassessment Notice Within Limitation Is Invalid If the Revenue Fails to Prove Actual Service on the Assessee Issue Whether a reassessment order and its consequential demand notice are legally sustainable if a notice under Section 148 was “issued” within the statutory limitation period under Section 149, but the Revenue fails to provide… Read More »

Completing a Reassessment Without Disposing of Objections by a Separate Speaking Order Invalidates the Entire Assessment

By | June 18, 2026
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Completing a Reassessment Without Disposing of Objections by a Separate Speaking Order Invalidates the Entire Assessment Issue Whether a reassessment order passed under Section 147, read with Section 143, is legally valid if the Assessing Officer (AO) completes the assessment without first disposing of the assessee’s objections to the recorded reopening reasons by a separate,… Read More »

Reassessment Cannot Be Based on Conjectures, Surmises, or Third-Party Evidence Lacking a Direct Link to the Assessee

By | June 18, 2026
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Reassessment Cannot Be Based on Conjectures, Surmises, or Third-Party Evidence Lacking a Direct Link to the Assessee Issue Whether a reassessment notice under Section 148 and its preparatory orders under Section 148A can be legally sustained when the alleged escapement of income is based entirely on third-party digital data without establishing any direct, corroborative link… Read More »

Medical Reimbursements Up To Exempted Limit Excluded From Fringe Benefit Tax Liability Of Employer

By | June 16, 2026
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Medical Reimbursements Up To Exempted Limit Excluded From Fringe Benefit Tax Liability Of Employer Issue Whether medical reimbursements up to the statutory limit of Rs. 15,000 per employee per annum, which are explicitly exempt from income tax in the hands of the employees, are liable to Fringe Benefit Tax (FBT) in the hands of the… Read More »

Mandatory CSR Expenditures to Registered Trusts Qualify for Section 80G Deductions and Working Capital Adjustments Preclude Separate Interest Imputation on Delayed Receivables

By | June 15, 2026
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Mandatory CSR Expenditures to Registered Trusts Qualify for Section 80G Deductions and Working Capital Adjustments Preclude Separate Interest Imputation on Delayed Receivables Issue Whether an assessee can claim a tax deduction under Section 80G for corporate donations made to a registered, approved trust, even if that expenditure forms part of its mandatory Corporate Social Responsibility… Read More »

Forex Fluctions on Export Proceeds are Operating in Nature and CSR Donations Qualify for Section 80G Deductions

By | June 15, 2026
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Forex Fluctions on Export Proceeds are Operating in Nature and CSR Donations Qualify for Section 80G Deductions Issue Whether foreign exchange gains/losses arising from the realization of normal export proceeds from Associated Enterprises (AEs) should be treated as operating in nature when computing the Profit Level Indicator (PLI) under the Transactional Net Margin Method (TNMM).… Read More »