Section 143(1)(a) adjustments made without prior show-cause notice are invalid and liable to be quashed. Issue Whether an intimation issued under Section 143(1)(a) of the Income-tax Act, 1961 making statutory adjustments to a return of income is legally valid if passed without issuing a prior show-cause notice to the assessee. Facts Return of Income: For… Read More »
Reassessment Passed Without Pecuniary Jurisdiction and Transfer Order Under Section 127 Is Void Ab Initio Issue Whether issuance of notices under Section 148 and Section 143(2) by an Assessing Officer lacking pecuniary jurisdiction renders the reassessment proceedings void ab initio. Whether failure to issue an order under Section 127 transferring jurisdiction to the Assessing Officer… Read More »
JDA Capital Gains Remanded to CIT(A) for Re-Adjudication to Evaluate Uncommunicated Property Valuation Reports JDA Capital Gains Remanded to CIT(A) for Re-Adjudication to Evaluate Uncommunicated Property Valuation Reports Issue Whether it was appropriate to set aside the order of the CIT(A) confirming a capital gains assessment on a Joint Development Agreement (JDA) under Section 2(47)… Read More »
Notice Under Section 143(2) Is Not Mandatory In Reassessment Proceedings As Section 147/148 Forms A Separate Code Issue Whether non-issuance and non-service of a notice under Section 143(2) during reassessment proceedings under Sections 147/148 invalidates the reassessment order, or whether Section 147/148 acts as a separate code for assessing escaped income where a Section 143(2)… Read More »
Executing a JDA granting construction rights alone does not constitute transfer or trigger capital gains tax. Issue Whether the execution of a registered Joint Development Agreement (JDA) granting construction and approval rights constitutes a “transfer” under Section 2(47)(v) of the Income-tax Act, 1961 read with Section 53A of the Transfer of Property Act, 1882, making… Read More »
Assessment under the Black Money Act is void for a Resident Not Ordinarily Resident as foreign shares acquired out of non-taxable foreign income are non-assessable and incorrectly valued. Assessment under the Black Money Act is void for a Resident Not Ordinarily Resident as foreign shares acquired out of non-taxable foreign income are non-assessable and incorrectly… Read More »
Transfer pricing adjustments, historical royalty, straight-line lease rents, and block depreciation are allowed; warranty provision is remanded. Issue Whether the revenue authorities are legally justified in: Determinining the Arm’s Length Price (ALP) of intra-group technical services and royalty as “nil” despite documented commercial benefits. Capitalizing recurring royalty expenses that were treated as revenue expenditures in… Read More »
Royalty and straight-line lease rent are allowed, while the warranty provision is remanded for scientific verification. Issue Whether the tax authorities can determine the Arm’s Length Price (ALP) of intra-group technical services at nil despite documented commercial benefits, treat historically allowed monthly royalty payments as capital expenses, disallow Accounting Standard-19 straight-line lease rents as notional,… Read More »
Sale proceeds from undisputed prior-year unlisted investments cannot be treated as unexplained cash credits. Issue Whether the sale proceeds from the disposal of unlisted equity investments, which originated in unchecked prior years, can be treated as unexplained cash credits under section 68, and whether an ad hoc addition for commission expenses can be made under… Read More »
An asset transferred via a slump sale cannot be isolated and taxed again upon registration. Issue Whether the revenue department can separately tax the subsequent registration of a conveyance deed for an immovable property under Section 50C in a later assessment year, when that specific asset was already transferred and taxed as part of a… Read More »