Tag Archives: IN THE ITAT DELHI BENCH

Exemption applies to agricultural land sold beyond specified municipal limits, making capital gains non-taxable under Section 2(14).

By | August 22, 2026
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Exemption applies to agricultural land sold beyond specified municipal limits, making capital gains non-taxable under Section 2(14). Issue Whether capital gains tax is applicable on the sale of agricultural land situated beyond the prescribed statutory distance from municipal boundaries under Section 2(14) of the Income-tax Act. Facts The assessee transferred a parcel of agricultural land… Read More »

ITAT Benchmark Rates by Currency-Specific Standards, Restricts Guarantee Adjustment, and Relieves Foreign Exchange Loss Disallowances

By | August 22, 2026
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ITAT Benchmark Rates by Currency-Specific Standards, Restricts Guarantee Adjustment, and Relieves Foreign Exchange Loss Disallowances ITAT Benchmark Rates by Currency-Specific Standards, Restricts Guarantee Adjustment, and Relieves Foreign Exchange Loss Disallowances Issue Whether interest on foreign currency loans to AEs should be benchmarked using currency-specific rates (LIBOR) rather than Indian SBI PLR. Whether corporate guarantees to… Read More »

Addition made under Section 69A for cash deposits during demonetization, treatment of agricultural land sale as capital gain, and estimation of business income under Section 44AD held bad in law and deleted in favor of the assessee.

By | August 22, 2026
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Addition made under Section 69A for cash deposits during demonetization, treatment of agricultural land sale as capital gain, and estimation of business income under Section 44AD held bad in law and deleted in favor of the assessee. Issue Whether cash deposits during demonetization can be treated as unexplained money under Section 69A when the assessee… Read More »

Only Embedded Profit Counts for Extended Reassessment Limits, Rendering Third-Party Reassessment Invalid Without Cross-Examination

By | August 21, 2026
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Only Embedded Profit Counts for Extended Reassessment Limits, Rendering Third-Party Reassessment Invalid Without Cross-Examination Issue Whether reassessment notices issued under Section 148 beyond the three-year limit based on third-party seized data (“Sanjeev Tally”) are valid when the estimated escaped income (embedded profit element) is below Rs. 50 lakhs per assessment year. Whether third-party digital records… Read More »

Transfer pricing benchmarking requires strict functional, product, and asset comparability while honoring binding administrative directives.

By | August 21, 2026
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Transfer pricing benchmarking requires strict functional, product, and asset comparability while honoring binding administrative directives. Issue Whether transfer pricing adjustments, selection/exclusion of comparable entities, computation of operating margins, allocation of working capital, choice of benchmarking methods (TNMM vs. CUP vs. Berry Ratio), and disallowance of expatriate salaries can be sustained when facing functional dissimilarities, non-binding… Read More »

Technical Glitch In Delay Filing Form 10-IC Entitles Domestic Company To Concessional Tax Rate Under Section 115BAA

By | August 19, 2026
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Technical Glitch In Delay Filing Form 10-IC Entitles Domestic Company To Concessional Tax Rate Under Section 115BAA Issue Whether a domestic company is entitled to the concessional rate of tax under Section 115BAA when Form 10-IC and the return of income were filed after the due date due to technical glitches on the e-filing portal,… Read More »

Interest-Free Loans to AE Attract Transfer Pricing Adjustments While Ongoing Marketing Costs Remain Revenue Expenditure

By | August 18, 2026
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Interest-Free Loans to AE Attract Transfer Pricing Adjustments While Ongoing Marketing Costs Remain Revenue Expenditure Interest-Free Loans to AE Attract Transfer Pricing Adjustments While Ongoing Marketing Costs Remain Revenue Expenditure Issue Whether advancing interest-free funds to an Associated Enterprise (AE) constitutes an international transaction requiring transfer pricing benchmarking, irrespective of the availability of interest-free own… Read More »

Concluded APA Implementation Upheld for Transfer Pricing and Disallowances Deleted Following Past Judicial Precedents

By | August 18, 2026
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Concluded APA Implementation Upheld for Transfer Pricing and Disallowances Deleted Following Past Judicial Precedents Issue Whether transfer pricing adjustments under Chapter X (AMP expenses, royalty, HQ expenses, service warranty) must be recomputed in terms of a concluded Advance Pricing Agreement (APA) under Section 92CC covering the relevant assessment and rollback years. Whether disallowances of expatriate… Read More »

Renewal under Sections 12AB and 80G Cannot Be Rejected Based on Pre-2021 Search Materials

By | August 18, 2026
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Renewal under Sections 12AB and 80G Cannot Be Rejected Based on Pre-2021 Search Materials Issue Whether the Principal Commissioner can reject an application for renewal of registration under Section 12AB and approval under Section 80G by relying on past search/investigation materials prior to 01-04-2021, rather than confining the enquiry to the activities and compliance of… Read More »

Disallowance of Interest Expenditure Deleted as AO Failed to Prove Business Funds Were Diverted for Personal Home Loans

By | August 17, 2026
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Disallowance of Interest Expenditure Deleted as AO Failed to Prove Business Funds Were Diverted for Personal Home Loans Issue Whether the disallowance of interest expenditure under Section 37(1) was justified when the accounts furnished by the assessee did not indicate that the interest claimed in the Profit and Loss account included any interest paid on… Read More »