Tag Archives: IN THE ITAT AHMEDABAD BENCH

Out-of-court patent settlement, business promotion, R&D expenses, and related interest are allowable revenue deductions.

By | August 6, 2026
0 Comment

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.

By | August 4, 2026
0 Comment

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.

By | August 3, 2026
0 Comment

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.

By | August 1, 2026
0 Comment

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

By | July 30, 2026
0 Comment

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

By | July 27, 2026
0 Comment

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
0 Comment

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
0 Comment

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
0 Comment

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
0 Comment

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 »