Tag Archives: IN THE ITAT DELHI BENCH

Inter-trust transfers out of accumulated funds are strictly taxable as deemed income regardless of project nomenclature.

By | July 6, 2026
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Inter-trust transfers out of accumulated funds are strictly taxable as deemed income regardless of project nomenclature. Issue Whether payments made out of accumulated income under Section 11(2) by a charitable trust to other Section 12AA-registered institutions for project implementation are hit by the restriction in Section 11(3)(d) and taxable as deemed income. Facts Income Accumulation:… Read More »

Section 153C assessments are quashed because satisfaction notes recorded post-April 1, 2021, render proceedings non-est and time-barred.

By | July 4, 2026
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Section 153C assessments are quashed because satisfaction notes recorded post-April 1, 2021, render proceedings non-est and time-barred. Issue Whether the assessment orders passed under Section 153C for AY 2015-16, 2016-17, and 2017-18 are legally sustainable when the mandatory satisfaction note was recorded on October 11, 2022 (Financial Year 2022-23), shifting the statutory block period and… Read More »

Section 153C assessments are invalid for excluded block periods and unabated years lacking incriminating material.

By | July 4, 2026
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Section 153C assessments are invalid for excluded block periods and unabated years lacking incriminating material. Issue Issue 1: Whether the block of six assessment years under Section 153C must be reckoned from the deemed date of search (the date the satisfaction note is recorded), thereby excluding years that fall outside this newly calculated window. Issue… Read More »

Assessment under section 153C is void if the satisfaction note is recorded after April 1, 2021.

By | July 4, 2026
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Assessment under section 153C is void if the satisfaction note is recorded after April 1, 2021. Issue Whether the assessment orders framed under Section 153C for the assessment years 2013-14 and 2014-15 are legally valid, given that the Assessing Officer’s satisfaction note was recorded after April 1, 2021, shifting the deemed date of search for… Read More »

Cash deposits are fully explained by a co-owner’s accepted advance and verified bank withdrawals

By | July 4, 2026
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Cash deposits are fully explained by a co-owner’s accepted advance and verified bank withdrawals Issue Whether a Section 69A addition for unexplained cash deposits totaling ₹48 lakhs can be sustained when a co-owner’s tax proceedings have already validated the primary source of the funds and the remaining deposits are backed by documented bank withdrawals. Facts… Read More »

Foreign exchange gains are operating income, and expense allocation must follow gross profit margins

By | July 4, 2026
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Foreign exchange gains are operating income, and expense allocation must follow gross profit margins Issue Whether the Transfer Pricing Officer (TPO) is legally justified in treating business-related foreign exchange gains as non-operating income, modifying common expense allocations from gross profit to turnover basis, and eliminating comparables without persistent losses under the Transactional Net Margin Method… Read More »

Additions for notional interest, ad-hoc expenses, and trade payables are invalid after favorable remand report

By | July 4, 2026
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Additions for notional interest, ad-hoc expenses, and trade payables are invalid after favorable remand report Issue Whether the Assessing Officer can sustainably maintain tax additions for notional interest on subsidiary loans, ad-hoc expense disallowances, and unexplained trade payables when the revenue’s own remand report subsequently accepts the assessee’s explanations without any adverse remarks. Facts The… Read More »

Unsecured Loan Additions Deleted upon Proving Source and Transfer Pricing Issues Remanded for Fresh Verification

By | June 27, 2026
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Unsecured Loan Additions Deleted upon Proving Source and Transfer Pricing Issues Remanded for Fresh Verification Unsecured Loan Additions Deleted upon Proving Source and Transfer Pricing Issues Remanded for Fresh Verification Issue Whether an addition under Section 68 can be sustained when the assessee provides comprehensive proof of the lender’s identity, creditworthiness, and source of funds.… Read More »

Assessment framed by an officer lacking jurisdiction without a Section 127 transfer order is void.

By | June 26, 2026
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Assessment framed by an officer lacking jurisdiction without a Section 127 transfer order is void. Issue Whether an assessment order passed under Section 143(3) by an Assessing Officer at New Delhi is legally sustainable when jurisdiction over the assessee vest with the Assessing Officer at Mumbai, and no formal transfer order under Section 127 was… Read More »

Compensatory interest, zero-exempt-income Section 14A disallowance, 80G CSR deductions, and workforce depreciation are allowed.

By | June 26, 2026
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Compensatory interest, zero-exempt-income Section 14A disallowance, 80G CSR deductions, and workforce depreciation are allowed. Issue Whether interest paid on a delayed license migration fee is a deductible revenue expenditure. Whether a disallowance under Section 14A can be made when the assessee earns no exempt income during the year. Whether corporate social responsibility (CSR) expenditure paid… Read More »