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 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 »
Delay in E-Verifying Form 10B Due to Covid-19 Inadvertence Condoned Under CBDT Circular No. 16/2024 Delay in E-Verifying Form 10B Due to Covid-19 Inadvertence Condoned Under CBDT Circular No. 16/2024 Issue Whether the Commissioner should be directed to grant registration under section 12AB (and consequential 80G approval) to an assessee-trust set up under a national… Read More »
Mechanical Approval Under Section 153D Without Application of Mind Invalidates Search Assessments Issue Whether an assessment order passed under Section 153C read with Section 143(3) is legally valid when the statutory approval required under Section 153D was granted in a mechanical manner without application of mind, and whether the curable-defect provisions of Section 292BC apply… Read More »
Reassessment Order Involving Section 50C Is Time-Barred as Extension Under Section 142A Is Impermissible Reassessment Order Involving Section 50C Is Time-Barred as Extension Under Section 142A Is Impermissible Issue Whether a reference to the Valuation Officer in a Section 50C matter can be made under the general provision of Section 142A to claim an extension… Read More »
Exemption Under Section 10(26AAB) Cannot Be Denied to Market Committee Due to Wrong Claim in Return Issue Whether an Agricultural Produce Market Committee legally entitled to exemption under Section 10(26AAB) can be denied the benefit merely because it inadvertently claimed exemption under Section 10(23C) in its return, and whether such mistake can be rectified under… Read More »
Enhanced Compensation and Section 28 Interest on Compulsorily Acquired Rural Agricultural Land Held Non-Taxable Issue Whether enhanced compensation received on the compulsory acquisition of rural agricultural land situated beyond eight kilometers from municipal limits is taxable as capital gains under Section 45(5) read with Section 2(14)(iii). Whether interest awarded under Section 28 of the Land… Read More »
Penalty Under Section 270A Quashed as AO Failed to Specify Charge and Shifted Between Misreporting and Under-Reporting Issue Whether a penalty order levied under Section 270A of the Income-tax Act, 1961 is legally sustainable when the Assessing Officer fails to specify the exact charge under Section 270A(2) or Section 270A(9) in the penalty notice and… Read More »
Share Premium Valuations Under Rule 11UA and Bona Fide Service Payments Are Non-Taxable Business Expenses Issue Whether tax authorities can reject a DCF valuation carried out under Rule 11UA for CCPS issued under Section 56(2)(viib), whether conversion of earlier CCPS into equity or unevidenced management fee reversals trigger additions, and whether service payments with assured… Read More »
Ex-gratia payment under BSNL VRS-2019 qualifies as retrenchment compensation fully exempt under Section 10(10B). Ex-gratia payment under BSNL VRS-2019 qualifies as retrenchment compensation fully exempt under Section 10(10B). Issue Whether ex-gratia compensation received by a retired BSNL employee under the BSNL VRS-2019 is eligible for exemption as retrenchment compensation under Section 10(10B) rather than being… Read More »