Tag Archives: IN THE ITAT BANGALORE BENCH

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 »

Subsequent Capital Gains Utilized for Improving an Existing Exempt Residential Property Qualify under Section 54F

By | June 27, 2026
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Subsequent Capital Gains Utilized for Improving an Existing Exempt Residential Property Qualify under Section 54F Issue Whether an assessee is entitled to claim an exemption under Section 54F of the Income-tax Act, 1961, for long-term capital gains utilized toward the further construction and structural improvement of an existing residential property, when the initial purchase of… Read More »

An Assessing Officer cannot issue multiple draft assessment orders for the same assessment year.

By | June 26, 2026
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An Assessing Officer cannot issue multiple draft assessment orders for the same assessment year. Issue Whether the Assessing Officer is legally permitted to issue two separate draft assessment orders for the same assessment proceedings to initiate distinct Dispute Resolution Panel (DRP) processes, and whether corporate tax additions made in the final assessment order without corresponding… Read More »

Deduction under Section 80P cannot be denied in full over nominal membership limits.

By | June 26, 2026
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Deduction under Section 80P cannot be denied in full over nominal membership limits. Issue Whether a co-operative society can be denied its deduction under Section 80P(2)(a)(i) in full on the grounds that it admitted nominal or associate members beyond the statutory 15% limit prescribed under State law, and whether the disallowance of an interest provision… Read More »

Reassessment orders passed by the NFAC prior to March 2022 are valid under Section 147A.

By | June 25, 2026
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Reassessment orders passed by the NFAC prior to March 2022 are valid under Section 147A. Reassessment orders passed by the NFAC prior to March 2022 are valid under Section 147A. Issue On Reassessment Jurisdiction: Whether a faceless reassessment order passed by the National Faceless Assessment Centre (NFAC) prior to March 29, 2022, is invalid or… Read More »