Tag Archives: IN THE ITAT DELHI BENCH

Reclassification of existing CCPS to share premium without fresh money receipt does not trigger Section 56(2)(viib).

By | September 24, 2026
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Reclassification of existing CCPS to share premium without fresh money receipt does not trigger Section 56(2)(viib). Reclassification of existing CCPS to share premium without fresh money receipt does not trigger Section 56(2)(viib). Issue Whether Section 56(2)(viib) can be invoked on accounting reclassifications of CCPS to share premium without fresh money receipt, and whether the Assessing… Read More »

Staffing Companies Qualify for Section 80JJAA Deduction, but Transfer Pricing Enhancements Exclude Chapter VI-A Benefits

By | September 23, 2026
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Staffing Companies Qualify for Section 80JJAA Deduction, but Transfer Pricing Enhancements Exclude Chapter VI-A Benefits Issue Whether a manpower and staffing agency qualifies for deduction under Section 80JJAA as an employer qua deployed personnel, and whether a one-day delay in filing Form 10DA is fatal to the claim. Whether Section 80JJAA deductions spanning consecutive years… Read More »

Receipt of sponsorship fees for organizing sports tournaments does not render a trust commercial under Section 12AB.

By | September 22, 2026
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Receipt of sponsorship fees for organizing sports tournaments does not render a trust commercial under Section 12AB. Issue Whether receiving substantial sponsorship receipts and entry fees for conducting professional golf tournaments converts a non-profit sports association’s genuine charitable activities into commercial operations, justifying the rejection of registration renewal under Section 12AB and approval under Section… Read More »

Reassessment notices beyond three years are invalid if escaped profit is under fifty lakhs.

By | September 21, 2026
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Reassessment notices beyond three years are invalid if escaped profit is under fifty lakhs. Issue Whether reassessment notices issued beyond three years under Section 148 are valid if the actual income escaping assessment (represented solely by the profit embedded in unaccounted purchases) is less than ₹50 lakhs; whether an assessment for AY 2022-23 based on… Read More »

High Court-approved capital reduction cannot be recharacterised as a buy-back under Section 115QA.

By | September 19, 2026
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High Court-approved capital reduction cannot be recharacterised as a buy-back under Section 115QA. Issues Whether tax authorities can recharacterise a High Court-approved capital reduction under Sections 100 to 104 of the Companies Act, 1956 as a share buy-back under Section 115QA of the Income-tax Act, 1961. Whether interest paid on capital borrowed and utilized for… Read More »

No TDS default under section 201 applies for EDC payments if payee satisfies first proviso conditions.

By | September 17, 2026
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No TDS default under section 201 applies for EDC payments if payee satisfies first proviso conditions. Issue Whether the assessee can be treated as an assessee-in-default under section 201(1) and saddled with interest under section 201(1A) for non-deduction of TDS under section 194C on External Development Charges (EDC) paid to HUDA/HSVP on directions of DTCP,… Read More »

Assessment order passed under section 143(3) in the name of a non-existent entity is legally invalid and liable to be quashed

By | September 17, 2026
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Assessment order passed under section 143(3) in the name of a non-existent entity is legally invalid and liable to be quashed Issue Whether an assessment order passed under section 143(3) of the Income-tax Act, 1961 (corresponding to section 270 of the Income-tax Act, 2025) in the name of an erstwhile partnership firm—after it had ceased… Read More »

Addition under Section 68 for unsecured loans from financially sound entities is legally unsustainable.

By | September 17, 2026
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Addition under Section 68 for unsecured loans from financially sound entities is legally unsustainable. Issue Whether additions made under Section 68 of the Income-tax Act, 1961 (corresponding to Section 102 of the Income-tax Act, 2025) as unexplained cash credits on account of unsecured loans received by the assessee-company are legally sustainable, where the lenders established… Read More »

Mismatch Between Service Tax and Income Tax Records Due to Accounting Methods Cannot Justify Addition

By | September 15, 2026
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Mismatch Between Service Tax and Income Tax Records Due to Accounting Methods Cannot Justify Addition Issue Whether an Assessing Officer can make an addition for alleged suppressed turnover based solely on a mismatch between service tax returns and income tax returns, when the assessee consistently follows the Percentage of Completion Method (POCM) under Section 145.… Read More »

Payment Made on First Working Day Post Bank Holiday Entitles Trust/Company to Employee PF/ESI Deduction

By | September 15, 2026
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Payment Made on First Working Day Post Bank Holiday Entitles Trust/Company to Employee PF/ESI Deduction Payment Made on First Working Day Post Bank Holiday Entitles Trust/Company to Employee PF/ESI Deduction Issue Whether an Assessing Officer can disallow employee PF/ESI contributions under Section 36(1)(va) when the payment delay was solely due to bank holidays (Saturday and… Read More »