Tag Archives: IN THE ITAT DELHI BENCH

Revision under Section 263 is impermissible when the Assessing Officer has conducted enquiries and no specific error is identified.

By | August 7, 2026
0 Comment

Revision under Section 263 is impermissible when the Assessing Officer has conducted enquiries and no specific error is identified. Issue Whether the Principal Commissioner can validly invoke revisionary jurisdiction under Section 263 on the ground of lack of in-depth verification when the Assessing Officer had already called for and examined detailed documentary evidence during assessment,… Read More »

Reassessment Order Quashed as Assessing Officer Made No Addition on Reasons Recorded for Reopening

By | August 7, 2026
0 Comment

Reassessment Order Quashed as Assessing Officer Made No Addition on Reasons Recorded for Reopening Issue Whether a reassessment order passed under Section 147 is valid when the Assessing Officer makes additions on an entirely different ground (unexplained money under Section 69A) while making no addition on the specific ground for which the assessment was reopened… Read More »

Manipulated derivative trading losses from illiquid stock options are non-deductible, while reopening approval jurisdiction requires CIT(A) re-examination.

By | August 7, 2026
0 Comment

Manipulated derivative trading losses from illiquid stock options are non-deductible, while reopening approval jurisdiction requires CIT(A) re-examination. Issue Whether losses generated from trading in illiquid stock option derivatives constitute genuine business losses allowable under Section 28(i) or pre-arranged, fictitious losses. Whether the reassessment proceedings under Section 147/148 were invalid due to procedural non-compliance under Section… Read More »

Matter remanded to verify whether branch office expenses post-business transfer are allowable under Section 28.

By | August 7, 2026
0 Comment

Matter remanded to verify whether branch office expenses post-business transfer are allowable under Section 28. Issue Whether expenses incurred by a foreign company’s Indian branch office post-transfer of its business on a going-concern basis are allowable under Section 28(i)/29 of the Income-tax Act, 1961. Facts Business Transfer: The assessee, a UK company operating in India… Read More »

Disallowance for non-deduction of TDS on non-resident payments is restricted to 30% under DTAA non-discrimination clause

By | August 7, 2026
0 Comment

Disallowance for non-deduction of TDS on non-resident payments is restricted to 30% under DTAA non-discrimination clause Disallowance for non-deduction of TDS on non-resident payments is restricted to 30% under DTAA non-discrimination clause Issue Whether disallowance under Section 40(a)(i) for payments made to non-residents without TDS should be restricted to 30% (at par with resident payments… Read More »

Partial Refunds Must Be Adjusted First Against Accrued Interest and Balance Against Principal Tax Component

By | August 5, 2026
0 Comment

Partial Refunds Must Be Adjusted First Against Accrued Interest and Balance Against Principal Tax Component Issue Whether a partial tax refund issued by the Revenue during appellate or rectification proceedings should be adjusted first against the interest accrued up to that date under Section 244A, or directly against the principal tax component refundable to the… Read More »

Assessment under Section 153C is invalid if initiated under the wrong legal standard or beyond statutory limitation limits.

By | August 4, 2026
0 Comment

Assessment under Section 153C is invalid if initiated under the wrong legal standard or beyond statutory limitation limits. Issue Whether Section 153C assessment proceedings are valid when the Assessing Officer applies the superseded “belongs to” test instead of post-amendment standards, and whether assessments exceeding statutory time limits or pecuniary thresholds can be sustained. Facts The… Read More »

Cash sales backed by stock, recorded in books, and verified by GST returns cannot be treated as unexplained money under Section 69A.

By | August 4, 2026
0 Comment

Cash sales backed by stock, recorded in books, and verified by GST returns cannot be treated as unexplained money under Section 69A. Issue Whether cash found during a search can be treated as unexplained money under Section 69A and taxed under Section 115BBE when the sale of goods generating such cash is fully recorded in… Read More »

Company Performing Broader Auto Component Functions Qualifies as Comparable and Brought Forward Losses Must Be Set Off

By | August 1, 2026
0 Comment

Company Performing Broader Auto Component Functions Qualifies as Comparable and Brought Forward Losses Must Be Set Off Issue Whether a company manufacturing core auto components, compressors, and filters qualifies as a valid functional comparable under TNMM, and whether the Assessing Officer must grant set-off of brought forward business losses omitted in the final tax computation… Read More »

Broader Auto-Component Manufacturer Is Valid TNMM Comparable and Loss Set-Off Must Be Granted

By | July 30, 2026
0 Comment

Broader Auto-Component Manufacturer Is Valid TNMM Comparable and Loss Set-Off Must Be Granted Broader Auto-Component Manufacturer Is Valid TNMM Comparable and Loss Set-Off Must Be Granted Issue Whether a company performing broader auto-component manufacturing functions can be accepted as a valid comparable under the Transactional Net Margin Method (TNMM), particularly when accepted by the Transfer… Read More »