Inadvertent Filing of Form 10-IF Under Section 115BAD Allows Recomputation of Taxable Income Under Old Regime Inadvertent Filing of Form 10-IF Under Section 115BAD Allows Recomputation of Taxable Income Under Old Regime Issue Whether a co-operative society that mistakenly exercised the option under Section 115BAD by filing Form 10-IF is entitled to have its taxable… Read More »
Section 263 revision setting aside assessment solely to direct Section 270A penalty initiation is legally unsustainable. Issue Whether the PCIT can invoke Section 263 of the Income-tax Act, 1961 / Section 377 of the Income-tax Act, 2025 to set aside an assessment order solely for directing the Assessing Officer to initiate discretionary penalty proceedings under… Read More »
Disallowance of unsubstantiated marketing expenses is restricted to Rs. 5 lakhs, and Section 270A penalty is deleted. Issue Whether the complete disallowance of marketing expenses supported only by self-made vouchers is justified under Section 37(1) of the Income-tax Act, 1961 / Section 34 of the Income-tax Act, 2025, when the expenditure is reasonable relative to… Read More »
Section 80GGC Deduction Disallowed as Donation to Political Party Was Fake Accommodation Entry Issue Whether a claim for deduction under section 80GGC for a donation made to a registered unrecognized political party can be disallowed under section 148 reassessment when investigation material demonstrates that the contribution was a non-genuine accommodation entry. Facts The assessee claimed… Read More »
Out-of-court patent settlement, business promotion, R&D expenses, and related interest are allowable revenue deductions. Issue Whether out-of-court patent litigation settlement payments and interest on borrowings to fund such settlements are allowable business expenditures under section 37(1) and section 36(1)(iii). Whether TP adjustments on captive power plant transfers, AE sales, and loans/share application money can be… Read More »
Unauthenticated Power of Attorney and gross negligence preclude condonation of an extraordinary 2376-day appeal delay. Unauthenticated Power of Attorney and gross negligence preclude condonation of an extraordinary 2376-day appeal delay. Issue Whether an inordinate delay of 2376 days in filing an appeal can be condoned under Section 254 when supported only by an unnotarized, inadmissible… Read More »
Section 14A disallowance cannot be sustained without changed facts when Revenue accepted earlier years’ orders. Issue Whether the disallowance under Section 14A read with Rule 8D by attributing salary expenses is sustainable when identical issues were decided in favor of the assessee in preceding assessment years and accepted by the Revenue without further appeal. Facts… Read More »
Opening WDV depreciation, advance subscription revenue, and inherited slump sale interest cannot be disallowed. Issue Depreciation on Intangibles: Whether depreciation can be denied on the opening Written Down Value (WDV) of a block of intangible assets under Section 43(6)(c) when it was duly examined and allowed in the preceding assessment year. Accrual of Advance Revenue:… Read More »
Disallowance of Intangible Asset Depreciation on Opening WDV, Unearned Advance Subscription Revenue, and Interest on Inherited Slump-Sale Borrowings Is Impermissible Without Rebuttal or Finding of Unreasonableness Disallowance of Intangible Asset Depreciation on Opening WDV, Unearned Advance Subscription Revenue, and Interest on Inherited Slump-Sale Borrowings Is Impermissible Without Rebuttal or Finding of Unreasonableness Issue Whether depreciation… Read More »
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 »