Revenue cannot invoke Section 179 against public company directors by lifting veil based on shareholding. Issue Whether Revenue can invoke Section 179 against a director of a registered public limited company by lifting the corporate veil merely due to concentrated shareholding and absence of public participation. Whether liability under Section 179(1) can be fastened on… Read More »
Unsupported Presumptions and Lack of Evidence Cannot Disallow Section 80-IE Deduction or Reallocate Ordinary Profits Issue Whether an assessee-firm is entitled to Section 80-IE deduction when concurrent findings confirm old machinery did not exceed 20%, and whether the AO can arbitrarily reduce eligible profits by allocating royalty, management fees, and R&D expenses under Section 80-IA(10)… Read More »
Fixed Deposit Investment of Sale Proceeds Qualifies as Capital Asset for Exemption Under Section 11(1A) Issue Whether investment of net sale proceeds from a trust property into a bank fixed deposit for two years constitutes acquisition of “another capital asset” under Section 11(1A), entitling the charitable trust to exemption and refund under Section 264 despite… Read More »
Reopening of assessment is unjustified as optional partnership deed clauses do not mandate paying partner interest or remuneration. Issue Whether the mere incorporation of discretionary or amended clauses in a partnership deed regarding interest on capital and partners’ remuneration signifies that such amounts were mandatorily payable to the partner. Whether reopening of the individual partner’s… Read More »
Housing Board Fulfilling Public Housing Needs Qualifies as Charitable Under Section 2(15) Exemptions Issue Whether the proviso to Section 2(15) read with Section 13(8) of the Income-tax Act, 1961 (and corresponding sections under the Income-tax Act, 2025) applies to a State Housing Board formed to satisfy the housing accommodation needs of the general public, thereby… Read More »
Disallowance calculated under Section 14A read with Rule 8D cannot be added back to Section 115JB book profit. Issue Whether disallowance computed under Section 14A read with Rule 8D of the Income-tax Rules, 1962, can be added back while calculating “book profit” under Section 115JB of the Income-tax Act, 1961, for Assessment Year 2016-17. Facts… Read More »
Interest on loans used to invest in shares for business expansion is deductible under Section 36(1)(iii). Interest on loans used to invest in shares for business expansion is deductible under Section 36(1)(iii). Issue Whether interest expenditure on borrowed funds utilized to invest in the shares of another company is allowable as a business deduction under… Read More »
Appeal Limitation Period Under Section 107 Runs From Date of Reasoned Rectification Order Under Section 161 Issue Whether the statutory period of limitation for filing an appeal under Section 107 of the CGST/GGST Act should be computed from the date of the original refund rejection order or from the date of the subsequent reasoned rectification… Read More »
Absence of Section 143(2) Notice Renders Reassessment Non-Est, Precluding Revisionary Jurisdiction Under Section 263 Issue Whether a reassessment order passed under Section 147 read with Sections 144 and 144B without issuing a mandatory notice under Section 143(2) is legally valid, and whether the Principal Commissioner of Income Tax (PCIT) can exercise revisionary power under Section… Read More »
Statutory Body National Dairy Development Board Exempt From Section 115JB MAT Provisions and Section 14A Book Profit Adjustments Issue Whether Section 115JB (Minimum Alternate Tax) and consequential adjustments under Section 14A to book profits apply to a statutory body established under a specific Act of Parliament. Facts Assessee Status: The assessee is the National Dairy… Read More »