Tag Archives: IN THE ITAT BANGALORE BENCH

Weighted Deduction Under Section 35(2AB) Is Limited to DSIR Approval, but Unapproved Portion Is Deductible Under Section 37(1)

By | July 27, 2026
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Weighted Deduction Under Section 35(2AB) Is Limited to DSIR Approval, but Unapproved Portion Is Deductible Under Section 37(1) Issue Whether an in-house scientific research expenditure disallowed for weighted deduction under Section 35(2AB) due to partial approval by DSIR in Form 3CL is still allowable as a normal business expenditure under Section 37(1). Facts Assessee &… Read More »

Development Fee Allegations and Technical Violations Cannot Disqualify Registered Educational Trust from Section 11 Exemption

By | July 27, 2026
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Development Fee Allegations and Technical Violations Cannot Disqualify Registered Educational Trust from Section 11 Exemption Issue Whether a registered educational trust can be denied exemption under Sections 11 and 12 on allegations of collecting capitation fees, claiming pre-AY 2015-16 depreciation, or acquiring assets via loans prior to receiving compensation under Section 11(1A). Facts Charitable Activity… Read More »

Inadvertent Claim Of Full Pre-Incorporation Expenses Disclosed Bona Fide Does Not Attract Section 270A Penalty

By | July 25, 2026
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Inadvertent Claim Of Full Pre-Incorporation Expenses Disclosed Bona Fide Does Not Attract Section 270A Penalty Issue Levy of Penalty under Section 270A for Inadvertent Expense Claim: Whether penalty under Section 270A for under-reporting of income can be levied when an assessee inadvertently claims 100% of pre-incorporation expenses instead of 1/5th under Section 35D, but offers… Read More »

Section 54 Exemption Applies to Multiple Residential Properties Transferred When Capital Gains Reinvested in Equal or Fewer Houses

By | July 24, 2026
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Section 54 Exemption Applies to Multiple Residential Properties Transferred When Capital Gains Reinvested in Equal or Fewer Houses Issue Whether an assessee who transfers multiple residential houses and incurs long-term capital gains is entitled to claim exemption under Section 54 for investing in a corresponding number of new residential houses (not exceeding the number of… Read More »

Rejection of an earlier Section 12AB application does not bar a trust from filing subsequent registration applications.Rejection of an earlier Section 12AB application does not bar a trust from filing subsequent registration applications.

By | July 24, 2026
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Rejection of an earlier Section 12AB application does not bar a trust from filing subsequent registration applications. Issue Whether the rejection or dismissiveness of an earlier registration application under Section 12AB debars a charitable trust from subsequently applying afresh under Form 10AB before the same authority, and what is the effective date of registration if… Read More »

Reassessment under Section 150(1) is invalid without specific Tribunal directions and if independently time-barred.

By | July 16, 2026
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Reassessment under Section 150(1) is invalid without specific Tribunal directions and if independently time-barred. Issue Whether the Assessing Officer can validly invoke Section 150(1) to reopen a time-barred assessment for AY 2008-09 based on a Tribunal order from a preceding year that merely quashed a reassessment without giving explicit findings or directions, and whether such… Read More »

Availability of sufficient interest-free funds creates a legal presumption that investments were made out of them.

By | July 16, 2026
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Availability of sufficient interest-free funds creates a legal presumption that investments were made out of them. Availability of sufficient interest-free funds creates a legal presumption that investments were made out of them. Issue Whether a disallowance of interest under section 36(1)(iii) of the Income-tax Act, 1961 is legally sustainable when the assessee possesses mixed funds… Read More »

No Disallowance Under Section 40(a)(i) if Technical Services Are Not Made Available to the Assessee

By | July 15, 2026
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No Disallowance Under Section 40(a)(i) if Technical Services Are Not Made Available to the Assessee Issues Whether payments to US non-resident contractors for software services are taxable as “Fees for Included Services” under the India-USA DTAA if the “make available” condition is not satisfied. Whether payments to a UK entity for a website access license… Read More »

Tax disputes decided in favor of the assessee-bank based on binding precedents and legal provisions.

By | July 10, 2026
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Tax disputes decided in favor of the assessee-bank based on binding precedents and legal provisions. Issue Whether the various additions and disallowances made by the Assessing Officer—concerning bad debt provisions under section 36(1)(viia), unrealized foreign exchange gains, Corporate Social Responsibility (CSR) expenditure, depreciation rates on ATMs (60%) and leased assets, section 14A disallowances, investment depreciation… Read More »

Statutorily mandated deposits qualify for section 80P deduction, but surplus fund interest is taxed under section 56.

By | July 2, 2026
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Statutorily mandated deposits qualify for section 80P deduction, but surplus fund interest is taxed under section 56. Issue Whether interest income earned on deposits maintained by a co-operative society under statutory compulsion (such as SLR/reserve fund requirements) qualifies as business income eligible for deduction under Section 80P(2)(a)(i). Whether interest or dividend income earned from investing… Read More »