Addition under Section 69A for repaid prior-year loan routed through banking channels is unsustainable. Addition under Section 69A for repaid prior-year loan routed through banking channels is unsustainable. Issue Whether an addition under Section 69A can be sustained as unexplained money on account of alleged bogus accommodation entries when the loan was actually received in… Read More »
Assessing Officer cannot reject valid DCF valuation, treat resident shareholders differently, or disallow operational interest and marketing expenses based merely on non-receipt of an occupancy certificate. Issue Whether the Assessing Officer (AO) can summarily reject a valid DCF valuation method prescribed under Rule 11UA to make additions under Section 56(2)(viib) on shares issued to resident… Read More »
Procedural Invalidity of Search Assessments under Section 143(3) and Key Substantive Reliefs Granted to Assessee Issue Whether post-search assessments completed under Section 143(3) instead of Section 148 are valid, and whether additions regarding unexplained money, unsecured loans, transfer pricing adjustments, section 14A disallowance, rent, and section 80-IB deductions are legally sustainable. Facts Search Assessment Procedure:… Read More »
Assessee-trust entitled to exemption under Section 11 as loan interest and donations constituted valid application. Issue Whether invocation of Section 40A(2)(a) disallowance and denial of Section 11 exemption are justified when advances were for construction or to registered charitable trusts, and donations were made with supporting Section 80G/12A documentation. Facts Borrowings and Advances: Assessee-trust raised… Read More »
Section 263 Revision Based on External Dictation Quashed; Interest-Free Loan to Overseas Subsidiary Held Quasi-Equity and Purchases Made for Commercial Expediency Allowed Issue Issue I (Section 263 Revision): Whether a revision order under Section 263 is legally sustainable when initiated under dictates/pressures from higher authorities rather than through independent application of mind by the Administrative… Read More »
Registration rejection under Section 12A set aside for fresh decision due to violation of natural justice. Issue Whether the rejection of a trust’s registration application under Section 12A(1)(ac)(iii) without issuing a show cause notice or affording a opportunity of hearing is legally sustainable. Facts Assessee-trust filed an application seeking registration under Section 12A(1)(ac)(iii) of the… Read More »
Assessee’s Disclosed Receipts Settled Under MAP Cannot Attract Section 270A Penalty for Under-Reporting Income Issue Whether a penalty under Section 270A of the Income-tax Act, 1961 for under-reporting of income is sustainable when the assessee fully disclosed all material facts regarding its receipts, but the revenue taxability was subsequently agreed upon under the Mutual Agreement… Read More »
Foreign Currency Loans Benchmark via LIBOR, Dissimilar Comparables Excluded, and Receivables Notional Interest Deleted Foreign Currency Loans Benchmark via LIBOR, Dissimilar Comparables Excluded, and Receivables Notional Interest Deleted Issue Whether, for Assessment Year 2013-14: Benchmarking of interest on foreign currency loans to AEs should be based on LIBOR plus spread rather than SBI PLR. Under… Read More »
Section 14A Disallowance and Mark-to-Market Stock Depreciation Invalid Where Interest-Free Surplus Exists Issue Whether Section 14A disallowance can be made without the AO recording valid satisfaction, and whether interest disallowance under Section 14A / Section 36(1)(iii) is sustainable when interest-free funds exceed investments yielding exempt income. Whether provision for mark-to-market loss/diminution in the value of… Read More »
BSNL VRS-2019 Compensation Is Tax-Exempt Retrenchment Compensation Under Section 10(10B) Of Income-tax Act BSNL VRS-2019 Compensation Is Tax-Exempt Retrenchment Compensation Under Section 10(10B) Of Income-tax Act Issue Whether compensation received by a retired BSNL employee under the BSNL Voluntary Retirement Scheme (VRS-2019) qualifies as tax-exempt retrenchment compensation under Section 10(10B) rather than Section 10(10C) of… Read More »