Tag Archives: IN THE ITAT BANGALORE BENCH

CPC Cannot Disallow Diminution in Subsidiary Investment Under Section 143(1)(a) Contrary to Jurisdictional High Court Ruling

By | September 30, 2026
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CPC Cannot Disallow Diminution in Subsidiary Investment Under Section 143(1)(a) Contrary to Jurisdictional High Court Ruling Issue Whether CPC can disallow a claim for diminution in value of investment in a wholly-owned subsidiary under Section 143(1)(a) based solely on a Tax Audit Report when a binding Jurisdictional High Court decision allows it, and whether non-consideration… Read More »

Ex-Gratia Under BSNL Voluntary Retirement Scheme 2019 Qualifies for Exemption Under Section 10(10B)

By | September 30, 2026
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Ex-Gratia Under BSNL Voluntary Retirement Scheme 2019 Qualifies for Exemption Under Section 10(10B) Ex-Gratia Under BSNL Voluntary Retirement Scheme 2019 Qualifies for Exemption Under Section 10(10B) Issue Whether an assessee who opted for the BSNL Voluntary Retirement Scheme, 2019 can claim exemption under Section 10(10B) for ex-gratia compensation before appellate authorities, even if claimed under… Read More »

Section 270A misreporting penalty applies despite subsequent tax payment or bona fide explanation.

By | September 25, 2026
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Section 270A misreporting penalty applies despite subsequent tax payment or bona fide explanation. Issue Whether a penalty under Section 270A for under-reporting of income in consequence of misreporting can be sustained when the assessee voluntarily pays the due tax and interest during penalty appeal proceedings and offers a bona fide explanation. Facts Assessment Year: AY… Read More »

CIT(E) Must Confine Section 12AB Enquiry to Genuineness of Activities and Grant Final Registration for Commenced Objects

By | September 22, 2026
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CIT(E) Must Confine Section 12AB Enquiry to Genuineness of Activities and Grant Final Registration for Commenced Objects Issue Whether the Commissioner of Income Tax (Exemptions) can reject an application for final registration under section 12AB by questioning the mode of donations or examining income assessment, when the trust has already commenced activities towards its charitable… Read More »

Delayed PF/ESIC contributions cannot be disallowed via Section 154 when the issue was debatable.

By | September 21, 2026
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Delayed PF/ESIC contributions cannot be disallowed via Section 154 when the issue was debatable. Issue Whether an Assessing Officer can invoke Section 154 to rectify an assessment and disallow delayed employees’ PF and ESIC contributions when the issue was legally debatable on the date of the rectification order, and whether such a rectification can be… Read More »

Rental income belongs to the partnership firm and capital gains are taxable in A.Y. 2005-06.

By | September 21, 2026
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Rental income belongs to the partnership firm and capital gains are taxable in A.Y. 2005-06. Issue Whether rental income from a constructed property in a Joint Development Agreement (JDA) can be taxed as undisclosed income in the hands of individual landowners, whether capital gains under a registered JDA executed in 2005 are chargeable in A.Y.… Read More »

TDS Credit Omitted in Original Return Must Be Granted on Rectification if Reflected in Form 26AS

By | September 18, 2026
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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.

By | September 11, 2026
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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.

By | September 7, 2026
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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.

By | August 31, 2026
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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 »