Tag Archives: IN THE ITAT BANGALORE BENCH

AO cannot impose a 200% misreporting penalty under Section 270A without specifying the exact statutory clause breached, especially when the taxpayer acted on a bona fide reliance on Form 16.

By | June 19, 2026
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AO cannot impose a 200% misreporting penalty under Section 270A without specifying the exact statutory clause breached, especially when the taxpayer acted on a bona fide reliance on Form 16. Issue Whether a 200% penalty for misreporting under Section 270A can be legally sustained when the Assessing Officer (AO) fails to specify the exact statutory… Read More »

Rebate under Section 87A is computed on the “total income” and cannot be denied on tax payable for Short-Term Capital Gains under Section 111A.

By | June 19, 2026
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Rebate under Section 87A is computed on the “total income” and cannot be denied on tax payable for Short-Term Capital Gains under Section 111A. Issue Whether the Central Processing Centre (CPC) / Assessing Officer is legally justified in restricting the tax rebate under Section 87A only to the tax computed on normal slab incomes, thereby… Read More »

ESOP discount is an ascertained business expenditure under Section 37(1), and no Section 14A disallowance can be made if no exempt income is earned.

By | June 19, 2026
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ESOP discount is an ascertained business expenditure under Section 37(1), and no Section 14A disallowance can be made if no exempt income is earned. Issue Whether the discount on the issuance of Employee Stock Option Plans (ESOPs) is an allowable business expenditure under Section 37(1) rather than a national or contingent liability, and whether a… Read More »

Tax Authorities Cannot Arbitrarily Reverse Multi-Year Deductions or Disallow Reimbursed Employee ESOP Costs, But Share Issue Expenses Remain Capital in Nature

By | June 15, 2026
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Tax Authorities Cannot Arbitrarily Reverse Multi-Year Deductions or Disallow Reimbursed Employee ESOP Costs, But Share Issue Expenses Remain Capital in Nature Issue Whether the Assessing Officer is justified in disallowing a multi-year amortization deduction under Section 35D in its final (5th) year when the same deduction was accepted and allowed without disturbance by the Revenue… Read More »

Deductions Amortized In Prior Years Cannot Be Arbitrarily Disallowed In The Final Year And ESOP Cost Rebounds Are Revenue Expenses But Share Issue Costs Expand Capital Base Permanently

By | June 13, 2026
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Deductions Amortized In Prior Years Cannot Be Arbitrarily Disallowed In The Final Year And ESOP Cost Rebounds Are Revenue Expenses But Share Issue Costs Expand Capital Base Permanently Deductions Amortized In Prior Years Cannot Be Arbitrarily Disallowed In The Final Year And ESOP Cost Rebounds Are Revenue Expenses But Share Issue Costs Expand Capital Base… Read More »