TDS Credit Omitted in Original Return Must Be Granted on Rectification if Reflected in Form 26AS Issue Whether an assessee who omitted to claim credit for tax deducted at source (TDS) in the original return filed under Section 139(1) can claim the TDS credit via a rectification application under Section 154, when the TDS is… Read More »
Transfer pricing adjustments apply strictly to associated enterprise dealings, with profit margins determined by operational items. Issues Whether Transfer Pricing (TP) adjustments under Chapter X can be applied at the entity level or must be restricted strictly to international transactions with Associated Enterprises (AEs). What principles govern the inclusion or exclusion of specific income and… Read More »
Sale of TDRs received against land surrender generates taxable capital gains using surrendered land’s cost as acquisition cost. Issue Whether sale of Transferable Development Rights (TDRs) received in exchange for surrendering land and building gives rise to taxable capital gains, and how its cost of acquisition should be computed under Section 48. Facts Surrender of… Read More »
SBN deposits from loan recoveries explained in books cannot be taxed under Section 68 or denied Section 80P deduction. Issue Whether cash deposits in Specified Bank Notes (SBNs) made by a primary agricultural credit society during demonetization—received towards crop and tractor loan repayments from members—can be added as unexplained cash credit under Section 68 (taxable… Read More »
TP Adjustments on Aggregated Royalty, Intra-Group Services, and Receivables Deleted while Working Capital Adjustment Remanded Issue Whether transfer pricing adjustments concerning operating cost items, turnover filters, comparable selections across segments, notional interest on delayed receivables, aggregated royalty payments, intra-group service charges, working capital adjustments, and non-TDS disallowances under section 40(a)(ia) are legally sustainable for AY… Read More »
Ad hoc Disallowances, Form 26AS Additions, and Cessation Triggers Deleted; Flood Relief Expenses Remanded for Assessment Issue Whether ad hoc expense disallowances, section 40(a)(ia) penalties for non-compliance with section 194C(7), section 41(1) additions on outstanding trade advances, section 26AS interest adjustments without accrual, high repair expenses on leased property, infrastructure sharing payments, and section 43B… Read More »
Retrospective Immunity Under Section 40(a)(i) Second Proviso Applies to Payments Made to Indian Branch of Foreign Company Without TDS Retrospective Immunity Under Section 40(a)(i) Second Proviso Applies to Payments Made to Indian Branch of Foreign Company Without TDS Issue Whether the second proviso to Section 40(a)(i) of the Income-tax Act, 1961 (Section 35 of the… Read More »
Fair Market Value Of JDA Built-Up Area Determines Consideration; Disallowance Of Interest Expenditure Is Impermissible With Sufficient Interest-Free Funds Issue Whether, for computing business income under a Joint Development Agreement (JDA) where land converted into stock-in-trade is exchanged for constructed area, the “full value of consideration” is to be determined based on the Fair Market… Read More »
Expenditure On Minor Repairs, Consumables, And Written-Off Vendor Advances Allowable As Business Revenue Deduction Issue Whether expenditure incurred on slotted angles, racks, and modules for existing plant maintenance constitutes revenue expenditure under Section 37(1) or capital expenditure. Whether housekeeping and consumable expenses supported by internal journal entries and shop-floor issue logs with underlying purchase invoices… Read More »
Gain From Repurchase of Unexercised Vested Stock Options Is Taxable as Capital Gains, Not Salary Perquisite Issue Whether the consideration received by an employee upon the repurchase of vested stock options—which were never exercised into shares—is taxable as “Capital Gains” under Section 45 or as a salary “Perquisite” under Section 17(2) of the Income-tax Act,… Read More »