Tag Archives: IN THE ITAT CHENNAI BENCH

Foreign exchange fluctuation loss on capital-purpose ECB restatement is capital in nature and non-deductible.

By | August 6, 2026
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Foreign exchange fluctuation loss on capital-purpose ECB restatement is capital in nature and non-deductible. Issue Whether foreign exchange fluctuation loss arising on the year-end restatement of an External Commercial Borrowing (ECB) utilized for capital purposes is deductible as revenue business expenditure under section 37(1). Facts The assessee-company availed an External Commercial Borrowing (ECB) from its… Read More »

Interest under section 40 of Black Money Act is unsustainable where foreign source was disclosed and tax statutory exemptions apply.

By | August 6, 2026
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Interest under section 40 of Black Money Act is unsustainable where foreign source was disclosed and tax statutory exemptions apply. Issue Whether interest under section 40(1) can be levied when a foreign source is disclosed in the return filed under section 139(1) and the dispute relates only to the quantum of income. Whether interest under… Read More »

Section 40(a)(i) Disallowance Upheld On MFN Withdrawal, Goodwill Depreciation, POS Charges, Software Depreciation, Section 80JJAA Allowed

By | August 6, 2026
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Section 40(a)(i) Disallowance Upheld On MFN Withdrawal, Goodwill Depreciation, POS Charges, Software Depreciation, Section 80JJAA Allowed Section 40(a)(i) Disallowance Upheld On MFN Withdrawal, Goodwill Depreciation, POS Charges, Software Depreciation, Section 80JJAA Allowed Issue Whether the disallowance under Section 40(a)(i) for export commission, depreciation on goodwill and software, revenue deduction for land development and Principal Only… Read More »

Bank cannot be treated as assessee in default for non-deduction of TDS on foreign LTC covered by High Court interim order.

By | August 3, 2026
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Bank cannot be treated as assessee in default for non-deduction of TDS on foreign LTC covered by High Court interim order. Issue Whether an assessee-bank can be treated as an “assessee in default” under Section 201 for not deducting tax at source (TDS) under Section 192 on Leave Travel Concession (LTC) reimbursements involving foreign travel,… Read More »

Section 270A Penalty Cannot Survive Quashed Quantum Assessments Or Additions Sustained On Estimated Basis

By | July 25, 2026
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Section 270A Penalty Cannot Survive Quashed Quantum Assessments Or Additions Sustained On Estimated Basis Issue Survival of Section 270A Penalty upon Quashing of Quantum Assessment: Whether a penalty levied under Section 270A for under-reporting of income can be sustained when the underlying quantum assessment order itself is quashed on legal grounds by the Tribunal. Levy… Read More »

Estimated Addition On Suppressed Professional Receipts Based On Third-Party Statements Without Account Rejection Is Unsustainable

By | July 25, 2026
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Estimated Addition On Suppressed Professional Receipts Based On Third-Party Statements Without Account Rejection Is Unsustainable Issue Validity of Reassessment Addition Based on Estimation: Whether an addition made on account of alleged suppression of professional receipts—calculated purely on estimated hospital consultation charges and manager statements without rejecting the assessee’s books of account or bringing independent corroborative… Read More »

PCIT Can Revise Faceless Assessment Orders Where AO Fails To Enquire Into Unverified Claims

By | July 25, 2026
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PCIT Can Revise Faceless Assessment Orders Where AO Fails To Enquire Into Unverified Claims Issue Jurisdiction under Section 263 over Faceless Assessment Orders: Whether a Principal Commissioner of Income Tax (PCIT) has the legal authority under Section 263 to revise an assessment order passed under Section 144B by the National Faceless Assessment Centre (NaFAC). Validity… Read More »

Agricultural Land Within Statutory Distance of Tambaram Municipality Constitutes Capital Asset, On-Money Restricted to Admitted Cash, and 70% Indexed Cost Allowed

By | July 25, 2026
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Agricultural Land Within Statutory Distance of Tambaram Municipality Constitutes Capital Asset, On-Money Restricted to Admitted Cash, and 70% Indexed Cost Allowed Issue Capital Asset Determination: Whether land located within 4.45 km of Tambaram Municipality (population exceeding 1.65 lakh) qualifies as a capital asset under Section 2(14)(iii)(b), making the gains arising from its sale taxable under… Read More »

Cash deposits previously taxed or covered by amnesty schemes cannot be subjected to double taxation.

By | July 16, 2026
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Cash deposits previously taxed or covered by amnesty schemes cannot be subjected to double taxation. Issue Whether cash deposits can be taxed as unexplained money under Section 69A in a subsequent year if a portion of the amount has already been taxed in a preceding assessment year or declared under an amnesty scheme. Whether the… Read More »

Insurance compensation adjusted against business loss cannot be separately taxed, and consequential concealment penalty fails.

By | July 16, 2026
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Insurance compensation adjusted against business loss cannot be separately taxed, and consequential concealment penalty fails. Issue Whether insurance compensation received for fire damage to commercial stock and interiors, already adjusted against the actual loss in the books, can be separately taxed under section 45(1A) or section 28. Whether a penalty levied for concealment of income… Read More »