Notice of Demand Unbacked by Scrutiny Assessment Order Findings Is Legally Unsustainable Issue Whether a demand notice under Section 156 and computation sheet raising additional tax and interest is legally valid when the assessment order under Section 143(3) explicitly accepts the returned income without any additions or supporting findings. Facts Assessee Profile & Filing: The… Read More »
Delay in Filing Appeal Condoned and Entire BSNL VRS 2019 Ex Gratia Exempt Under Section 10(10B) Issue Whether the CIT(A) erred in refusing to condone a 1540-day delay in filing an appeal, and whether ex gratia compensation received by a retired BSNL employee under the BSNL Voluntary Retirement Scheme (VRS), 2019 qualifies for full income… Read More »
Net Loss from Online Gaming After Accounting for Buy-In Amounts Is Not Taxable Under Section 115BB Issue Whether gross wallet credits can be taxed under Section 115BB when the assessee incurred an overall net loss in online gaming activity after accounting for buy-in deposits and user account transfers. Facts The assessee, an individual, filed a… Read More »
Reassessment Notice Beyond Three Years Is Invalid If Escaped Income Is Below Fifty Lakhs Reassessment Notice Beyond Three Years Is Invalid If Escaped Income Is Below Fifty Lakhs Issue Whether a reassessment notice issued under Section 148 beyond the three-year limitation period is valid when the initial allegation of unexplained cash deposits is dropped and… Read More »
Extraordinary COVID-19 Overhead Costs Must Be Excluded as Non-Operating and TP Adjustments Must Be Restricted to AE Transactions Issues Exclusion of Extraordinary COVID-19 Fixed Overheads: Whether extraordinary fixed overhead costs (salaries, depreciation, etc.) incurred during COVID-19 lockdown without generating operating revenue should be treated as non-operating expenses and excluded from the Profit Level Indicator (PLI)… Read More »
Co-operative Society Is Eligible for Section 80P Deduction Claimed in Section 148 Return and on Bank Interest From Idle Funds Co-operative Society Is Eligible for Section 80P Deduction Claimed in Section 148 Return and on Bank Interest From Idle Funds Issue Whether a deduction under Section 80P can be claimed in a return filed in… Read More »
Valid registration granted under Section 12A(1)(ac)(i) cannot be invalidated during renewal without proper cancellation procedures. Valid registration granted under Section 12A(1)(ac)(i) cannot be invalidated during renewal without proper cancellation procedures. Issue Whether the CIT(Exemptions) can reject a renewal application filed under Section 12A(1)(ac)(ii) on the ground that the original provisional/migrated registration under Section 12A(1)(ac)(i) was… Read More »
Miscellaneous Application for Rectification Under Section 254 Dismissed as No Error Found in Tribunal Stay Order Issue Whether a Miscellaneous Application under Section 254(2) for rectification can be entertained to direct a refund or impose costs when the assessee points out no mistake apparent from the record in the Tribunal’s original stay order. Facts The… Read More »
Notional interest, clerical reporting errors, and substantiated trade payables cannot be taxed as income. Issue Whether notional interest calculated on interest-free business advances can be brought to tax under Section 4 of the Income-tax Act in the absence of a contractual clause or evidence of actual accrual/receipt. Whether an addition to income can be made… Read More »
Reassessment Beyond Four Years Is Impermissible When All Depreciation Details Were Fully Disclosed Under Scrutiny Reassessment Beyond Four Years Is Impermissible When All Depreciation Details Were Fully Disclosed Under Scrutiny Issue Whether the Assessing Officer can validly issue a notice under Section 148 to reopen an assessment after the expiry of four years from the… Read More »