Final Assessment Order Passed in the Name of an Amalgamated, Non-Existent Entity is Void Issue Whether DRP directions and a final assessment order passed under Section 143(3) read with Sections 144C(13) and 144B in the name of an erstwhile amalgamated company are valid, when the fact of amalgamation and subsequent name change had already been… Read More »
TPO cannot arbitrarily value management fees at ‘Nil’ or treat interest on receivables as a standalone transaction. Issue Whether the Transfer Pricing Officer (TPO) was legally justified in reducing the Arm’s Length Price (ALP) of management fees and royalty payments to ‘Nil’, making a separate adjustment for interest on outstanding receivables, and disallowing late employee… Read More »
Common Area Maintenance charges paid by tenants are subject to TDS as contractual service fees, not as rent. Issue Whether Common Area Maintenance (CAM) charges paid by a tenant company to a mall operator are liable for Tax Deducted at Source (TDS) under Section 194I at the rate of 10% as “Rent,” or if they… Read More »
Reassessment notice issued with sanction from an incorrect, lower authority under Section 151 is invalid and void. Reassessment notice issued with sanction from an incorrect, lower authority under Section 151 is invalid and void. Issue Whether a reassessment notice issued under Section 148 for the Assessment Year (AY) 2016-17 is legally sustainable when the mandatory… Read More »
Trading results accepted without rejecting book accounts bars Section 68 additions for demonetization cash deposits. Issue Whether cash deposits made by a jeweler during the demonetization period can be treated as unexplained cash credits under Section 68 when the deposits originate from recorded sales that are fully supported by books of accounts, VAT returns, and… Read More »
Deeming fiction under Section 56(2)(x) cannot be applied retrospectively to transactions executed before its statutory effective date. Issue Whether the deeming provisions of Section 56(2)(x) can be invoked for the Assessment Year (AY) 2017-18 to tax the difference between the Stamp Duty Value (SDV) and the actual purchase consideration of a property, given that the… Read More »
Adjustment of gratuity against past excess trust contributions and Ind-AS book adjustments are non-disallowable tax entries. Issue Whether an accounting debit for gratuity representing an adjustment against past excess contributions to an approved Gratuity Trust can be disallowed under Section 40A(7). Whether lease rentals paid without Tax Deducted at Source (TDS) can be allowed as… Read More »
In the absence of an FTS clause, Thai company’s technical receipts are non-taxable business profits without an Indian PE. Issue Whether, in the absence of a specific Fees for Technical Services (FTS) clause in the India-Thailand DTAA, payments received by a Thai resident company from Indian group entities for management and technical services can be… Read More »
Principal Commissioner cannot invoke revisionary powers under Section 263 when the Assessing Officer has already conducted proper inquiries and verified the expenses during assessment. Principal Commissioner cannot invoke revisionary powers under Section 263 when the Assessing Officer has already conducted proper inquiries and verified the expenses during assessment. Issue Whether the Principal Commissioner of Income… Read More »
Revenue cannot force POCM over consistently accepted Project Completion Method, nor make additions for interest-free advances backed by own interest-free funds. Issue Whether the tax authorities can unilaterally replace an consistently followed Project Completion Method with the Percentage of Completion Method (POCM), disallow interest under Section 36(1)(iii) despite the availability of interest-free funds, invoke Section… Read More »