Tag Archives: IN THE ITAT AHMEDABAD BENCH

Reopening Based Solely on Investigation Reports Without Verification Invalidates Assessment and Deletes Purchase Disallowances

By | July 27, 2026
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Reopening Based Solely on Investigation Reports Without Verification Invalidates Assessment and Deletes Purchase Disallowances Reopening Based Solely on Investigation Reports Without Verification Invalidates Assessment and Deletes Purchase Disallowances Issue Whether an assessment can be validly reopened under Section 148 and purchases treated as bogus when the Assessing Officer acts purely on Investigation Wing inputs without… Read More »

LTCG Exempt Under Section 10(38) Cannot Be Treated as Cash Credit if Sale Is Bona Fide

By | July 22, 2026
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LTCG Exempt Under Section 10(38) Cannot Be Treated as Cash Credit if Sale Is Bona Fide Issue Whether Long Term Capital Gain (LTCG) claimed exempt under Section 10(38) on the sale of shares can be treated as bogus accommodation entry and added as cash credit under Section 68 when the transactions are backed by complete… Read More »

Section 80IB housing deductions cannot be denied based on subsequent-year events and untested statements.

By | July 10, 2026
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Section 80IB housing deductions cannot be denied based on subsequent-year events and untested statements. Issue Whether a housing project developer can be denied statutory deductions under Section 80IB(10) for prior assessment years based on an alleged single-allottee violation that took place in a subsequent financial year, especially when the allegation relies on an untested statement… Read More »

Sales tax incentive received as a capital receipt is excluded from normal income and Section 115JB book profits.

By | July 9, 2026
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Sales tax incentive received as a capital receipt is excluded from normal income and Section 115JB book profits. Issue Whether a recurring sales tax incentive/subsidy received by the assessee constitutes a non-taxable capital receipt that must be excluded from both the regular income computation under Section 28(i) and the book profit computation under Section 115JB.… Read More »

Disallowances for unverified TDS items are upheld while crystallized expenses and business write-offs are allowed.

By | July 7, 2026
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Disallowances for unverified TDS items are upheld while crystallized expenses and business write-offs are allowed. Issue Whether tax disallowances under Section 40(a)(ia) apply to unverified consultancy components and unconfirmed interest payments, and whether crystallized expenses, group-invoiced costs, routine electricity bills, written-off sundry balances, and business customer advances are deductible without attracting Section 68 or Section… Read More »

Delayed Receivables Subsumed Under TNMM and Working Capital Adjustment Cannot Face Separate Notional Interest Imposition

By | July 2, 2026
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Delayed Receivables Subsumed Under TNMM and Working Capital Adjustment Cannot Face Separate Notional Interest Imposition Issue Whether a separate Transfer Pricing (TP) adjustment by imputing notional interest on delayed trade receivables from Associated Enterprises (AEs) is legally sustainable when the transaction has already been benchmarked under the Transactional Net Margin Method (TNMM) and a working… Read More »

Entire Bogus Purchase Value Cannot Be Taxed When Corresponding Sales Are Undisputed

By | July 2, 2026
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Entire Bogus Purchase Value Cannot Be Taxed When Corresponding Sales Are Undisputed Issue Whether the Assessing Officer is justified in adding the entire value of alleged bogus purchases to the assessee’s taxable income under Section 69C when the corresponding sales are accepted, no stock discrepancies exist, and only the profit element embedded in those purchases… Read More »

TPO cannot value actual intra-group services at ‘Nil’ based on a subjective ‘benefit test’, and sequential commercial disallowance under section 37(1) cannot survive if the TP adjustment is deleted.

By | June 22, 2026
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TPO cannot value actual intra-group services at ‘Nil’ based on a subjective ‘benefit test’, and sequential commercial disallowance under section 37(1) cannot survive if the TP adjustment is deleted. Issue Whether the Transfer Pricing Officer (TPO) was legally justified in determining the Arm’s Length Price (ALP) of intra-group services at ‘Nil’ based on a subjective… Read More »

Assessee wins corporate guarantee, R&D, and registration claims; medical freebies and late welfare dues disallowed.

By | June 22, 2026
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Assessee wins corporate guarantee, R&D, and registration claims; medical freebies and late welfare dues disallowed. Issue Whether the various additions and disallowances made by the Assessing Officer (AO) for Assessment Year 2013-14—concerning corporate guarantees, interest on borrowings, weighted R&D deductions, product registration expenses, exempt income disallowances (under regular and MAT provisions), foreign exchange hedging losses,… Read More »

Consistency in Transfer Pricing methodology and prevention of double taxation on reversed provisions bind the Assessing Officer.

By | June 20, 2026
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Consistency in Transfer Pricing methodology and prevention of double taxation on reversed provisions bind the Assessing Officer. Consistency in Transfer Pricing methodology and prevention of double taxation on reversed provisions bind the Assessing Officer. Issue Whether the Transactional Net Margin Method (TNMM) at the entity level remains the most appropriate method for benchmarking international transactions… Read More »