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 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. 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 »
Retrospective Application of Enhanced Exemption Limit of Rs. 25 Lakhs Under Section 10(10AA)(ii) Allowed for Leave Encashment Retrospective Application of Enhanced Exemption Limit of Rs. 25 Lakhs Under Section 10(10AA)(ii) Allowed for Leave Encashment Issue Whether the enhanced leave encashment exemption limit of Rs. 25,00,000 introduced via CBDT Notification No. 31/2023 applies retrospectively to Assessment… Read More »
Disallowance of depreciation on opening WDV of goodwill and vendor compliance expenses deleted in assessee’s favour. Issue Whether the Assessing Officer was justified in re-examining and disallowing depreciation on the opening WDV of goodwill by treating its actual cost as nil, despite the issue being settled in the year of amalgamation. Whether the disallowance of… Read More »
Addition Under Section 69 Unproductive When Immovable Property Purchases Are Recorded in Books Issue Whether an addition under Section 69 for unexplained investments can be made in the hands of a partnership firm when the acquisition of immovable properties is fully recorded in the firm’s books of account and funded through partners’ capital contributions. Facts… Read More »
Reversal of Bad Debt Provision and Overdue NPA Interest Held Non-Taxable, Rule 6ABA Remanded for Re-examination Issue Whether the release/reversal of an NPA provision transferred to the Profit & Loss account can be taxed under Section 41(1) as a remission or cessation of trading liability. Whether deduction under Section 36(1)(viia) read with Rule 6ABA is… Read More »
Stamp Duty Value on Date of Agreement Applies Under Proviso to Section 50C for Unregistered Agreements Stamp Duty Value on Date of Agreement Applies Under Proviso to Section 50C for Unregistered Agreements Issues Applicability of Stamp Duty Value on Date of Agreement: Whether the proviso to Section 50C requires an agreement to sell to be… Read More »
Ad Ad Hoc Disallowance of Purchases and Business Expenses Is Unsustainable Without Independent Verification or Defect in Books Issue Whether the Assessing Officer is justified in making an ad hoc disallowance of 50% of purchases under Section 69C and ad hoc disallowances of labor/salary and business expenses under Section 37(1), without conducting independent inquiries, issuing… Read More »
Additions under Sections 69A and 56(2)(x) are unsustainable when consideration is adjusted against prior mortgage liabilities, guideline values are disputed without independent evidence, and cash deposit explanations are rejected without objective verification. Additions under Sections 69A and 56(2)(x) are unsustainable when consideration is adjusted against prior mortgage liabilities, guideline values are disputed without independent evidence,… Read More »