Tag Archives: IN THE ITAT BANGALORE BENCH

Extraordinary COVID-19 Overhead Costs Must Be Excluded as Non-Operating and TP Adjustments Must Be Restricted to AE Transactions

By | August 13, 2026
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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

By | August 12, 2026
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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.

By | August 10, 2026
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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

By | August 6, 2026
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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.

By | August 5, 2026
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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

By | August 4, 2026
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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 »

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 »