Tag Archives: Deputy Commissioner of Income-tax

Suo-Moto Section 40(a)(ia) Disallowance Does Not Absolve Chapter XVII-B TDS Compliance Obligations

By | September 12, 2026
0 Comment

Suo-Moto Section 40(a)(ia) Disallowance Does Not Absolve Chapter XVII-B TDS Compliance Obligations Issue Whether a suo-moto 30% disallowance of year-end provisions under Section 40(a)(ia) absolves an assessee from compliance with tax deduction at source (TDS) obligations under Chapter XVII-B and liability as an “assessee in default” under Section 201. Whether non-deduction of TDS on year-end… Read More »

TP adjustments must be restricted to AE transactions and routine corporate expenses excluded.

By | September 12, 2026
0 Comment

TP adjustments must be restricted to AE transactions and routine corporate expenses excluded. Issue Whether transfer pricing adjustments must be restricted solely to international transactions with Associated Enterprises (AEs) or extended entity-wide. Whether non-recurring or non-AE expenses (amortization of goodwill, bad debts, legal costs) should be excluded from operating costs under TNMM. Whether the TPO… Read More »

Writ challenging Section 148 notice based on GST order dismissed as reassessment must follow Income-tax Act.

By | September 11, 2026
0 Comment

Writ challenging Section 148 notice based on GST order dismissed as reassessment must follow Income-tax Act. Writ challenging Section 148 notice based on GST order dismissed as reassessment must follow Income-tax Act. Issue Whether a notice issued under Section 148 based on an order passed by a Proper Officer under GST legislation can be interfered… Read More »

Reclassification of loss via revised return under Section 139(5) cannot be disregarded if no fresh loss is claimed.

By | September 11, 2026
0 Comment

Reclassification of loss via revised return under Section 139(5) cannot be disregarded if no fresh loss is claimed. Issue Whether a revised return filed under Section 139(5) reclassifying an already disclosed F&O loss from speculative to non-speculative business loss can be disregarded by the Assessing Officer when the total loss claimed remains substantially the same… Read More »

Transfer pricing adjustments apply strictly to AE transactions, requiring fresh verification of turnover and operating cost filters.

By | September 11, 2026
0 Comment

Transfer pricing adjustments apply strictly to AE transactions, requiring fresh verification of turnover and operating cost filters. Issue Whether transfer pricing adjustments under Chapter X must be restricted solely to international transactions with Associated Enterprises (AEs) rather than entity-level operations. Whether arbitrary application of a turnover filter (50% range) and exclusion/inclusion of non-recurring operating costs,… Read More »

Exemption under Section 11 cannot be claimed for the first time in Section 148 returns.

By | September 11, 2026
0 Comment

Exemption under Section 11 cannot be claimed for the first time in Section 148 returns. Issue Whether a charitable trust that failed to file returns under Section 139 within the prescribed time can validly claim exemption under Sections 11 and 12 for the first time in a return filed in response to a reassessment notice… Read More »

Dissimilar KPO and Outsourced Entities Excluded from Back-Office Comparables for Transfer Pricing Analysis

By | September 10, 2026
0 Comment

Dissimilar KPO and Outsourced Entities Excluded from Back-Office Comparables for Transfer Pricing Analysis Issue Whether high-end KPO/IT entities, companies with outsourced business models, lack of segmental data, demergers, or disproportionate turnover qualify as comparable companies for benchmarking routine back-office support services, and whether adjustments for working capital, interest on receivables, and expense allocations are permissible.… Read More »

Investor Protection Fund Exempted As Payments Benefit Public and Trust Funds Are Irrevocable

By | September 10, 2026
0 Comment

Investor Protection Fund Exempted As Payments Benefit Public and Trust Funds Are Irrevocable Investor Protection Fund Exempted As Payments Benefit Public and Trust Funds Are Irrevocable Issue Whether an Investor Protection Fund registered under Section 12A is entitled to tax exemptions under Sections 11 and 10(23EA) when compensating investors of defaulting members, whether corpus/eligible contributions… Read More »

Reversal write-backs, foreign exchange losses, and secondment reimbursements are non-taxable, while transfer pricing adjustments require re-examination.

By | September 9, 2026
0 Comment

Reversal write-backs, foreign exchange losses, and secondment reimbursements are non-taxable, while transfer pricing adjustments require re-examination. Issue Whether capacity utilization/economic adjustments under TNMM can be summarily rejected by the TPO without considering past coordinate bench precedents. Whether provisions created in earlier years and treated as operating expenses can be treated as non-operating income upon write-back… Read More »

Unsubstantiated additions based on uncorroborated third-party documents, estimates, and WhatsApp chats without direct proof are impermissible.

By | September 8, 2026
0 Comment

Unsubstantiated additions based on uncorroborated third-party documents, estimates, and WhatsApp chats without direct proof are impermissible. Unsubstantiated additions based on uncorroborated third-party documents, estimates, and WhatsApp chats without direct proof are impermissible. Issue Whether an addition towards unaccounted cash receipts (“on-money”) from flat sales under Section 69A can be sustained solely on estimates, WhatsApp chats,… Read More »