Employer Cannot Be Held Assessee in Default for Non-Deduction of TDS When Restrained by High Court Order Issue Whether an employer-bank can be treated as an “assessee in default” under Section 201/201(1A) for non-deduction of tax at source (TDS) on Leave Travel Concession (LTC) reimbursements involving foreign travel, when such non-deduction was done pursuant to… Read More »
Section 80G deduction on Corporate Social Responsibility donations is legally allowable and section 263 revision is invalid. Issue Whether the Principal Commissioner of Income Tax (PCIT) was justified in invoking revisionary jurisdiction under Section 263 to set aside an assessment order on the ground that donations forming part of Corporate Social Responsibility (CSR) expenditure under… Read More »
Berry Ratio Unsuitable For Manufacturers And Interest Imputed Only On Differential Credit Period Delays Issue Whether the Berry ratio (Operating Profit / Value Added Expenses) under TNMM is an appropriate Profit Level Indicator (PLI) for benchmarking international transactions of an entity with a full-fledged manufacturing profile. Whether interest can be imputed on delayed receivables from… Read More »
Enhanced Leave Encashment Exemption Limit Applies Retroactively Granting Full Exemption to Assessee Issue Whether the enhanced monetary limit of ₹25,00,000 for leave encashment exemption introduced via CBDT Notification No. 31/2023 (dated 24.05.2023) applies to Assessment Year 2021–22, thereby entitling the retired non-government employee to full exemption under Section 10(10AA) of the Income-tax Act, 1961. Facts… Read More »
Interest On Enhanced Compensation Under Section 28 Is Capital Receipt Exempt Under Section 10(37), Rendering Section 263 Revision Invalid Issue Whether interest received under Section 28 of the Land Acquisition Act, 1894 on enhanced compensation for compulsory acquisition of agricultural land is exempt under Section 10(37) or taxable under Section 56(2)(viii), and whether the PCIT… Read More »
Addition Under Section 68 Unjustified When Loan Identity, Capacity, and Genuineness Are Duly Proven Issue Whether unsecured loans from creditors can be added as unexplained cash credits under Section 68 merely due to non-response to Section 133(6) notices when identity, creditworthiness, and genuineness are established through primary documents and subsequent repayment through banking channels. Whether… Read More »
Returned Income Accepted Without Variation Under Section 148 Cannot Be Penalized As Under-Reported Income Issue Whether Section 270A creates an irrebuttable presumption of under-reporting when a return of income is filed for the first time in response to a notice under Section 148. Whether income voluntarily declared by an assessee and accepted in full by… Read More »
Reassessment Notice Issued Beyond Statutory Limitation Period Under First Proviso to Section 149(1) Is Void Reassessment Notice Issued Beyond Statutory Limitation Period Under First Proviso to Section 149(1) Is Void Issue Whether a reassessment notice issued under Section 148 on 20.03.2024 for Assessment Year 2015-16 is barred by limitation under the first proviso to Section… Read More »
Estimated Gross Profit Additions From Stock Shortages Do Not Attract Penalty Under Section 271AAB Issue Whether an estimated addition to gross profit, computed by applying a profit rate to an inferred stock shortage found during a search, constitutes “undisclosed income” under the Explanation to Section 271AAB to justify levying a penalty. Facts Assessee & Search… Read More »
Disallowance of Interest and Cash Credit Addition on Partners’ Capital Held Unsustainable Due to Sufficient Interest-Free Funds and Accounting Misconception Issue Whether a disallowance under section 36(1)(iii) for notional interest on interest-free advances is sustainable when the assessee’s non-interest-bearing funds significantly exceed the advances, and the Assessing Officer fails to establish a direct nexus with… Read More »