Reassessment notice issued beyond outer time limit of 31-3-2023 for AY 2016-17 is barred by limitation. Issue Whether the outer limit for issuing a reassessment notice under section 148 for AY 2016-17 was 31-03-2023 as per the first proviso to section 149. Whether the time granted to the assessee to reply under section 148A(b) is… Read More »
Swiss Affiliate (EXP-IN) Not a DAPE; Business Profits Not Taxable in India, Reassessment Sanctions Held Valid Issues Agency Permanent Establishment (DAPE): Whether the Swiss assessee’s Indian affiliate (EXP-IN) constituted a Dependent Agent Permanent Establishment (DAPE) in India under Article 5(5) of the India–Switzerland DTAA, making its revenue taxable in India. Validity of Reassessment Sanction: Whether… Read More »
Unexecuted template agreements cannot serve as CUP comparables, and routine business expenses including RSUs, IT support, and promotions are allowable. Issue Transfer Pricing of Royalty: Whether unexecuted template agreements can be applied under the CUP method to benchmark royalty payments, and whether purchase and royalty transactions can be aggregated under the Resale Price Method (RPM).… Read More »
Interest paid to NHAI is exempt from TDS under Section 194A notification, negating default liability Issue Whether National Highways Authority of India (NHAI) qualifies as a corporation established by a Central Act under Notification No. 3489 dated 22.10.1970 issued under Section 194A(3)(iii)(f). Whether an assessee paying interest on mobilization advances to NHAI is required to… Read More »
Capital Gains Tax on Slump Sale Cannot Exceed Valid Valuation Without Demonstrating Defects Under Rule 11UAE Issue Whether the Assessing Officer can disregard an accountant’s report in Form 3CEA and substitute the net worth valuation under Rule 11UAE to tax the entire slump sale consideration as capital gains without pointing out specific defects or issuing… Read More »
Land Distance to be Reckoned from Expanded Municipal Limits and Dishonoured Cheque Does Not Reduce Sale Consideration Issue Whether the distance of agricultural land from municipal limits for determining its status as a capital asset under Section 2(14) should be measured from the expanded municipal boundaries existing on the date of transfer. Whether non-receipt of… Read More »
70% Sale Consideration Diverted by Overriding Title to Collaborator Cannot Be Taxed as Assessee’s Income Issue Whether 70% of the sale proceeds payable to a collaborator under a valid written collaboration agreement stands diverted by overriding title and can be excluded from the builder assessee’s taxable income, and whether the documented cost of acquisition of… Read More »
ITAT Upholds Income Recognition and Disallowance Deletions for Agency Firm, Restricting Specific Expenses and Reclassifying Capital Outgo ITAT Upholds Income Recognition and Disallowance Deletions for Agency Firm, Restricting Specific Expenses and Reclassifying Capital Outgo Issues Shortfall in Opening Deposit Liability & Income Recognition: Whether income of an agent firm recognized on the basis of an… Read More »
Absence of explicit irrevocability and dissolution clauses in trust deed is not ground for denying Section 12AB registration and Section 80G approval Issue Whether the absence of explicit “irrevocable” and “dissolution” clauses in a trust deed justifies the rejection of an application for registration/revalidation under Section 12AB and approval under Section 80G(5)(ii). Facts The assessee-trust… Read More »
Gains from share transactions constitute capital gains and purchase payments to non-resident parent attracting no TDS disallowance confirmed. Issue Whether gains from the sale of shares and securities should be assessed as capital gains or business income when identical transactions in earlier years were treated as pure investments by the Tribunal. Whether payments made to… Read More »