Reopening scrutiny assessment after four years without fresh material or failure to disclose is impermissible. Issue Whether the Assessing Officer can legally reopen a completed scrutiny assessment under section 147 after the expiry of four years solely to reclassify software expenses as capital assets, in the absence of any new tangible material or any allegation… Read More »
Nil Transfer Pricing Adjustment Remanded and Enhanced Section 80JJAA Deduction Granted Nil Transfer Pricing Adjustment Remanded and Enhanced Section 80JJAA Deduction Granted Issue Issue I (Transfer Pricing): Whether a Transfer Pricing Officer (TPO) can sustain an Arm’s Length Price (ALP) of “Nil” for Global IT services once the assessee furnishes critical additional evidence on appeal… Read More »
Additional Evidence on Transfer Pricing and Enhanced Gross Income Merit Re-evaluation of Deductions Additional Evidence on Transfer Pricing and Enhanced Gross Income Merit Re-evaluation of Deductions Issue Whether a Transfer Pricing Officer (TPO) can sustain an Arm’s Length Price (ALP) of “Nil” for IT services once the assessee submits fresh, comprehensive cost allocation and service… Read More »
Official revenue classifications and specific statutory distance notifications override administrative presumptions regarding agricultural land taxation. Issue Whether the revenue department can deny a tax exemption under Section 10(37) on capital gains from the compulsory acquisition of land by relying on localized reports of non-cultivation, when official state revenue records explicitly classify the land as agricultural… Read More »
Estimation of business income by applying a reasonable profit rate on turnover precludes separate additions for cash deposits under Section 69A. Issue Whether the Assessing Officer is legally justified in estimating a hardware trading firm’s business income by applying a 2% net profit rate on its disclosed turnover when the assessee fails to produce its… Read More »
One-time settlement to contractors is fully deductible under Section 37 as revenue business expenditure Issue Whether a one-time settlement paid to contractors during business restructuring can be restricted to a one-fifth deduction under Section 35DDA parity, and whether Section 14A disallowances and DDT treaty rate claims can be finalized without proper lower authority verification or… Read More »
Assessee Entitled To Depreciation On Amalgamation Goodwill And Debt-Free Companies Are Exempt From Notional Interest Adjustments Issue Whether an assessee is entitled to claim depreciation at 25% under section 32(1)(ii) on goodwill arising out of an amalgamation scheme approved by the High Court, in the absence of any specific statutory embargo. Whether a Transfer Pricing… Read More »
Forex losses from capital transactions are non-operating, and functionally dissimilar companies must be excluded. Issue Issue I & II (Section 92C): Whether foreign exchange losses arising from External Commercial Borrowings (ECBs) and capital transactions should be treated as non-operating expenses when computing the Profit Level Indicator (PLI), and whether an automotive/renewable energy component manufacturer can… Read More »
Section 80-IB(10) Housing Deduction Cannot Be Restricted By Arbitrary and Erroneous Land Cost Substitution Section 80-IB(10) Housing Deduction Cannot Be Restricted By Arbitrary and Erroneous Land Cost Substitution Issue Whether the Commissioner (Appeals) was legally justified in rejecting a rectification application under Section 154 when the original order restricted a housing project’s deduction under Section… Read More »
Domestic AMP spend without an agreement is not an international transaction, and business losses must be allowed for set-off. Issue On Transfer Pricing: Whether Advertisement, Marketing, and Promotion (AMP) expenses incurred within India by a subsidiary to promote its own product sales constitute an “international transaction” under Chapter X, in the absence of an explicit… Read More »