Tag Archives: IN THE ITAT CHENNAI BENCH

Reversal write-backs, foreign exchange losses, and secondment reimbursements are non-taxable, while transfer pricing adjustments require re-examination.

By | September 9, 2026
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Reversal write-backs, foreign exchange losses, and secondment reimbursements are non-taxable, while transfer pricing adjustments require re-examination. Issue Whether capacity utilization/economic adjustments under TNMM can be summarily rejected by the TPO without considering past coordinate bench precedents. Whether provisions created in earlier years and treated as operating expenses can be treated as non-operating income upon write-back… Read More »

Unsubstantiated additions based on uncorroborated third-party documents, estimates, and WhatsApp chats without direct proof are impermissible.

By | September 8, 2026
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Unsubstantiated additions based on uncorroborated third-party documents, estimates, and WhatsApp chats without direct proof are impermissible. Unsubstantiated additions based on uncorroborated third-party documents, estimates, and WhatsApp chats without direct proof are impermissible. Issue Whether an addition towards unaccounted cash receipts (“on-money”) from flat sales under Section 69A can be sustained solely on estimates, WhatsApp chats,… Read More »

Section 148 Reassessment Notice Issued for AY 2015-16 After March 31, 2026 is Barred by Limitation

By | September 7, 2026
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Section 148 Reassessment Notice Issued for AY 2015-16 After March 31, 2026 is Barred by Limitation Issue Whether a notice issued under Section 148 of the Income-tax Act, 1961 for Assessment Year 2015-16 after March 31, 2026 is barred by limitation under the first proviso to Section 149(1), rendering the consequent reassessment proceedings bad in… Read More »

No TDS Required under Section 194A on Interest Paid to Statutory Universities and Wholly Government-Owned Companies

By | September 5, 2026
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No TDS Required under Section 194A on Interest Paid to Statutory Universities and Wholly Government-Owned Companies Issue Whether a public sector undertaking is liable as an “assessee in default” under Section 201 for non-deduction of TDS under Section 194A on interest paid to statutory universities and wholly government-owned companies. Facts Assessee Status: The assessee is… Read More »

Enhanced compensation for agricultural land is exempt and recharacterization of capital gains is valid.

By | September 4, 2026
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Enhanced compensation for agricultural land is exempt and recharacterization of capital gains is valid. Enhanced compensation for agricultural land is exempt and recharacterization of capital gains is valid. Issue Whether enhanced compensation received for compulsory acquisition of agricultural land qualifies for exemption under Section 10(37), and whether an inadvertent classification of Long-Term Capital Gains as… Read More »

Section 263 Revision Cannot Be Invoked When Assessing Officer Adopts Plausible View Accepting Loan Repayment Application

By | September 3, 2026
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Section 263 Revision Cannot Be Invoked When Assessing Officer Adopts Plausible View Accepting Loan Repayment Application Issue Whether the Commissioner (Exemptions) can invoke revisionary jurisdiction under Section 263 to set aside an assessment order accepting a charitable trust’s claim of loan repayment as an application of income under Section 11, when the Assessing Officer conducted… Read More »

Penalty under Section 272A(2)(e) must be restricted to Section 139(4) deadline, not Section 148 return date.

By | September 2, 2026
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Penalty under Section 272A(2)(e) must be restricted to Section 139(4) deadline, not Section 148 return date. Issue Whether penalty under Section 272A(2)(e) for failure to furnish a return of income under Section 139 is to be computed up to the date of filing the return in response to a Section 148 notice, or restricted only… Read More »

Reconciliation of BSNL Form 26AS gross receipts with net discount books warrants deleting business income addition.

By | September 1, 2026
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Reconciliation of BSNL Form 26AS gross receipts with net discount books warrants deleting business income addition. Issue Whether the Assessing Officer was justified in treating the gross amounts reflected in Form 26AS as taxable commission income without considering the trade discount allowed by BSNL, which was netted off in the assessee’s books of account. Facts… Read More »

CIT(E) cannot reject Section 12AB registration for object modification delay without examining charitable eligibility

By | September 1, 2026
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CIT(E) cannot reject Section 12AB registration for object modification delay without examining charitable eligibility CIT(E) cannot reject Section 12AB registration for object modification delay without examining charitable eligibility Issue Whether the CIT(E) was justified in rejecting an assessee’s registration application under Section 12AB solely due to procedural non-compliance with Section 12A(1)(ac)(v) for modification of objects,… Read More »

Enhanced Leave Encashment Exemption Limit of Rs. 25 Lakh Applies Retroactively to Non-Government Employees.

By | August 31, 2026
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Enhanced Leave Encashment Exemption Limit of Rs. 25 Lakh Applies Retroactively to Non-Government Employees. Issue Whether the enhanced leave encashment exemption ceiling of Rs. 25,00,000 under Section 10(10AA) introduced vide Notification No. 31/2023 applies to a non-government employee who retired during AY 2021-22 prior to the notification date. Facts Retirement & Receipt: The assessee, a… Read More »