Unrealizable insolvency assets must be excluded from Rule 11UA Fair Market Value computations. Issue Whether the Assessing Officer (AO) is legally justified in mechanically invoking Section 50CA and Rule 11UA to calculate the Fair Market Value (FMV) of unquoted shares based purely on book values, without excluding unrealizable insolvency assets or considering the price discovered… Read More »
DSIR-certified R&D qualifies for weighted deduction, and uncertified capital expenditure is allowed as normal deduction. Issue Whether the Assessing Officer is required to grant the full 200% weighted deduction under Section 35(2AB) on the capital R&D expenditure certified by the DSIR in Form 3CL, rather than limiting it to 100%. Whether scientific research capital expenditure… Read More »
Consequential verification by AO infirms PCIT’s revisionary order, but unverified CSR and TDS interest claims stand remanded. Consequential verification by AO infirms PCIT’s revisionary order, but unverified CSR and TDS interest claims stand remanded. Issue Whether the Principal Commissioner of Income-tax (PCIT) was legally justified in invoking revisionary jurisdiction under section 263 on the grounds… Read More »
Corporate guarantee fees at 1% upheld; bad debts actual write-off and lease rentals allowed as revenue expense. Issue Whether the TPO was justified in benchmarking a free corporate guarantee given to an overseas AE at an ALP of 1%, and whether the AO erred in disallowing an actual bad debt write-off and the principal component… Read More »
Gross sale consideration is not “income escaping assessment” for invoking the extended limitation period under Section 149(1)(b). Issue Whether a reassessment notice issued under Section 148 on April 2, 2022, for the Assessment Year (AY) 2015-16 is barred by limitation under the provisions of Section 149 as amended by the Finance Act, 2021. Whether the… Read More »
Serving Notice Solely Through the ITBA Portal is Invalid and Cannot Justify Denying Trust Registration or Approvals Issue Whether serving statutory notices exclusively through the Income Tax Business Application (ITBA) portal constitutes a valid method of service under Section 282(1) read with Rule 127(1), and whether an application for fresh registration under Section 12AB can… Read More »
AIF Investment and Processing Fees Income Cannot Be Arbitrarily Reclassified as Taxable Business Income Issue Whether the Assessing Officer was justified in re-characterizing the interest income, short-term capital gains, and processing fees of a SEBI-registered Category II Alternative Investment Fund (AIF) as business income, thereby denying tax exemption under Section 10(23FBA) read with Section 115UB… Read More »
Alternative Investment Fund’s Exemption Under Section 10(23FBA) Cannot Be Denied By Arbitrarily Reclassifying Investment Returns As Business Income Issue Whether the Assessing Officer was justified in re-characterizing an Alternative Investment Fund’s (AIF) interest income, short-term capital gains, and processing fees as business income to deny tax exemption under Section 10(23FBA), without applying settled judicial tests… Read More »
Exemption Disallowed due to Delayed Bond Investment Remanded to Verify Non-Availability of Eligible Section 54EC Bonds Exemption Disallowed due to Delayed Bond Investment Remanded to Verify Non-Availability of Eligible Section 54EC Bonds Issue Whether the Central Processing Centre (CPC) was justified in reducing the assessee’s claimed deduction under Section 54EC from ₹1 crore to ₹50… Read More »