Tag Archives: IN THE ITAT HYDERABAD BENCH

BSNL VRS ex-gratia compensation eligible for Section 10(10B) exemption subject to workman status verification.

By | September 25, 2026
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BSNL VRS ex-gratia compensation eligible for Section 10(10B) exemption subject to workman status verification. Issue Whether ex-gratia compensation received by BSNL employees under VRS-2019 qualifies for tax exemption as retrenchment compensation under Section 10(10B), and whether the matter needs verification by the Assessing Officer regarding individual eligibility conditions, including workman status. Facts Assessment Years: AY… Read More »

Temporary site-specific infrastructure expenditure for contract execution constitutes allowable revenue expenditure under Section 37(1).

By | September 11, 2026
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Temporary site-specific infrastructure expenditure for contract execution constitutes allowable revenue expenditure under Section 37(1). Issue Whether expenditure incurred on site-specific and temporary items like rollers, structures, scrap rails, conveyor belts, and ventilation ducting for executing a civil EPC contract is allowable as revenue expenditure under Section 37(1) or must be treated as capital expenditure providing… Read More »

Unexplained Expenditure Addition Under Section 69C Deleted as Bearer Cheque Source Was Verified From Bank Account

By | September 10, 2026
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Unexplained Expenditure Addition Under Section 69C Deleted as Bearer Cheque Source Was Verified From Bank Account Issue Whether an addition under Section 69C for unexplained expenditure can be sustained merely because the assessee failed to fully explain the purpose of excess bearer cheque payments, even though the source of funds was verified from the assessee’s… Read More »

Reassessment Notice Beyond Three Years Without Specified Authority Sanction and Consequent Penalty Under Section 270A Quashed

By | September 5, 2026
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Reassessment Notice Beyond Three Years Without Specified Authority Sanction and Consequent Penalty Under Section 270A Quashed Issue Whether a reassessment notice issued under Section 148 beyond three years from the end of the relevant assessment year without approval from the specified authority under Section 151(ii) is legally valid, and whether a penalty levied under Section… Read More »

Section 54GB exemption denied as company incorporation date strictly determines eligibility, not business commencement date.

By | September 5, 2026
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Section 54GB exemption denied as company incorporation date strictly determines eligibility, not business commencement date. Issue Whether an investment in a company incorporated prior to the statutory window satisfies Section 54GB(6) eligibility criteria if manufacturing operations or MSME registration commenced within the specified period. Facts Capital Gains Realized: For Assessment Year 2017-18, the individual assessee… Read More »

Reimbursement claims for conveyance, LTA, and cash rent payment additions were remanded for proper verification and enquiry.

By | August 31, 2026
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Reimbursement claims for conveyance, LTA, and cash rent payment additions were remanded for proper verification and enquiry. Issue Whether the disallowance of claimed conveyance and food allowance reimbursements should be remanded to the Assessing Officer for verification of fuel and telephone expenses incurred by the assessee and reimbursed by the employer. Whether the disallowance of… Read More »

Penalty Under Section 270A Unreasonable Where Income Subject To TDS Disclosed Under Section 148 Return

By | August 19, 2026
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Penalty Under Section 270A Unreasonable Where Income Subject To TDS Disclosed Under Section 148 Return Issue Whether penalty for under-reporting or misreporting under Section 270A is sustainable when a salaried taxpayer, acting under a bona fide belief, discloses her entire income (subject to TDS except a small bank interest amount) in response to a Section… Read More »

Ad-Hoc 30% Site Maintenance Expense Disallowance Reduced to 10% Due to Partial Supporting Voucher Evidence

By | August 17, 2026
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Ad-Hoc 30% Site Maintenance Expense Disallowance Reduced to 10% Due to Partial Supporting Voucher Evidence Issue Whether an ad-hoc disallowance of 30% on site maintenance expenditure was justified when the expenses were supported by internal self-made vouchers and muster rolls, or whether a lower disallowance of 10% would meet the ends of justice. Facts Business… Read More »

Reassessment Additions Unsustainable If Primary Reopening Grounds Do Not Result in Any Tax Addition

By | August 15, 2026
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Reassessment Additions Unsustainable If Primary Reopening Grounds Do Not Result in Any Tax Addition Issue Whether an Assessing Officer can make tax additions on newly discovered issues during reassessment proceedings if no addition is made on the original issue that formed the basis for reopening the assessment. Facts Assessment Year: Assessment Year 2020–21. Initiation of… Read More »

A Registered Sale Deed Constitutes a Valid Transfer Under Section 2(47), Attracting Capital Gains Tax Despite Claims of Coercion

By | August 11, 2026
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A Registered Sale Deed Constitutes a Valid Transfer Under Section 2(47), Attracting Capital Gains Tax Despite Claims of Coercion Issue Whether the execution of a registered sale deed constitutes a valid “transfer” under Section 2(47) attracting capital gains under Section 45 of the Income-tax Act, 1961, despite the assessee’s claims of non-receipt of consideration, coercion,… Read More »