Trust Granted Registration Under Section 12AB Cannot Be Denied Section 80G Approval On Same Objects Issue Whether approval under Section 80G (Section 133 of the Income-tax Act, 2025) can be denied to a charitable-cum-religious trust that is already registered under Section 12AB (Section 332 of the Income-tax Act, 2025) on the ground of religious objects,… Read More »
Unexplained capital introduced in kind attracts Section 68, but proves genuine when inherited or gifted. Unexplained capital introduced in kind attracts Section 68, but proves genuine when inherited or gifted. Issue Whether Section 68 applies to capital introduced into a business by crediting the value of personal jewellery/precious items, and whether the addition made thereunder… Read More »
Multiple tax issues resolved: Share allotment without cash inflow escapes Section 56(2)(viib), non-deduction disallowances clarified, and bad debt write-offs upheld. Issues Whether Section 56(2)(viib) applies to share allotments made without cash inflow as consideration for acquiring a business. Whether write-off of unrecovered fees/interest previously offered to tax is deductible as bad debt under Section 36(1)(vii).… Read More »
Individual Share Below ₹50 Lakh Threshold in Joint Property Purchase Does Not Attract TDS Section 194-IA Issue Whether an intimation issued under section 200A treating an assessee in default for non-deduction of TDS under section 194-IA is sustainable when the assessee’s individual share in a jointly purchased immovable property is below the threshold limit of… Read More »
DDT on Dividends to Non-Residents Restricted to DTAA Rates; Corporate Club Membership Fees Fully Allowable Issue Whether Dividend Distribution Tax (DDT) under section 115-O on dividends paid to non-resident shareholders is capped by DTAA rates, and whether corporate club membership fees qualify as allowable business expenditure under section 37(1). Facts DDT on Foreign Shareholders (AYs… Read More »
Bad Debt Claims, MAT Credit Corrections, and Rectification Orders Remanded for Verification and Natural Justice Issue Whether the write-off of advances, correction of MAT credit without a revised return, and ex-parte rectification orders adding FTS disallowances require factual verification and adherence to natural justice. Facts Bad Debts/Advances Write-off: For AY 2011-12, the assessee (an automotive… Read More »
TP Adjustments, 80-IA Deductions, and Section 14A Disallowance Deleted; Power Benchmarking, Cess, and Interest Remanded Issue Whether transfer pricing adjustments on cost allocations, external CUP benchmarking for power transfer, section 80-IA disallowances, section 14A additions without exempt income, MAT cess adjustments, and section 234A interest levies are legally sustainable for AY 2020-21. Facts TP Adjustment… Read More »
Unauthenticated Digital Evidence Lacking Hash Value Integrity and Chain of Custody Cannot Basis Unexplained Additions Issue Whether additions made under Sections 69 and 69C based on digital images and WhatsApp conversations retrieved from a third party are legally sustainable when statutory safeguards, hash value verification, and chain of custody under Section 65B of the Evidence… Read More »
Reassessment Initiated Solely Based on Audit Party Objections Without New Facts Is Invalid Change of Opinion Reassessment Initiated Solely Based on Audit Party Objections Without New Facts Is Invalid Change of Opinion Issue Whether reopening of assessment under Section 147 after four years based solely on an audit party objection, without any new tangible material… Read More »
Cancellation of Registration Under Section 12AB Invalid as Educational Trust’s Turnkey Project Was Not Non-Genuine Activity Cancellation of Registration Under Section 12AB Invalid as Educational Trust’s Turnkey Project Was Not Non-Genuine Activity Issue Whether the cancellation of registration under Section 12AB of the Income-tax Act, 1961 (Section 332 of the Income-tax Act, 2025) is legally… Read More »