Tag Archives: IN THE ITAT MUMBAI BENCH

TPO cannot apply domestic CUP for benchmarking export sales without geographic market adjustments.

By | July 24, 2026
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TPO cannot apply domestic CUP for benchmarking export sales without geographic market adjustments. Issue Whether domestic sales prices can be adopted as CUP to benchmark export sales without making suitable adjustments for differences in geographic locations and market conditions under Transfer Pricing provisions. What is the appropriate interest rate for benchmarking delayed realization of export… Read More »

Subsisting Section 12AB registration cannot be treated as invalid for non-production of earlier registration certificate.

By | July 24, 2026
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Subsisting Section 12AB registration cannot be treated as invalid for non-production of earlier registration certificate. Issue Whether the Principal Commissioner / Commissioner of Income Tax (Exemption) [CIT(E)] is justified in treating a subsisting provisional/five-year registration granted under Section 12AB (in Form 10AC) as invalid merely due to the non-production of an earlier Section 12A/12AA registration… Read More »

BCCI is not taxable on foreign match income from PILCOM as it only received Indian match revenue.

By | July 24, 2026
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BCCI is not taxable on foreign match income from PILCOM as it only received Indian match revenue. Issue Whether the Income Tax Department was justified in protective inclusion of overseas match revenues co-hosted by PILCOM (Pakistan and Sri Lanka matches) into the assessee BCCI’s taxable income under Section 10(23) read with Section 5 of the… Read More »

Hospital providing medical relief is eligible for Section 12AB registration without retrospective cancellation by CIT(E).

By | July 24, 2026
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Hospital providing medical relief is eligible for Section 12AB registration without retrospective cancellation by CIT(E). Issue Whether a hospital providing medical relief qualifies as a charitable activity under the first limb of Section 2(15) without being impacted by commercial metrics like tariff structures, bed usage, or revenue per bed. Whether the Principal Commissioner / Commissioner… Read More »

Penalty Under Section 270A Is Unsustainable as AO Failed to Specify Applicable Limb of Misreporting

By | July 23, 2026
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Penalty Under Section 270A Is Unsustainable as AO Failed to Specify Applicable Limb of Misreporting Issue Whether a penalty levied under Section 270A for under-reporting of income in consequence of misreporting is legally sustainable when the Assessing Officer fails to specify the exact limb under Section 270A(9) in the show-cause notice and fails to establish… Read More »

Disallowances and Additions Based on Retracted Statements and Uncorroborated Third-Party Materials Are Impermissible

By | July 23, 2026
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Disallowances and Additions Based on Retracted Statements and Uncorroborated Third-Party Materials Are Impermissible Issue Whether additions made towards consultancy charges, alleged unaccounted cash sales, cash salary payments, land purchase “on-money”, and unexplained expenditures/moneys can be sustained under Sections 37, 68, 69A, and 69C when based solely on retracted statements, WhatsApp chats, and third-party loose papers… Read More »

Unanswered Commission Claims and Excess Section 14A Disallowance Restricted While 60% UPS Depreciation Allowed

By | July 23, 2026
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Unanswered Commission Claims and Excess Section 14A Disallowance Restricted While 60% UPS Depreciation Allowed Issue Whether commission/brokerage expenses can be allowed where the Assessing Officer (AO) failed to issue Section 133(6) notices, and conversely, whether expenses should be disallowed for parties who received notices but failed to reply. Whether Rule 8D for Section 14A disallowance… Read More »

Tribunal Upholds Major Transfer Pricing, Business Loss, and Tax Deductions for Assessee Steel Manufacturer

By | July 23, 2026
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Tribunal Upholds Major Transfer Pricing, Business Loss, and Tax Deductions for Assessee Steel Manufacturer Tribunal Upholds Major Transfer Pricing, Business Loss, and Tax Deductions for Assessee Steel Manufacturer Issue Whether transfer pricing adjustments on AE loans/guarantees/captive power, deductions for bad debts/business losses/written-off capital liabilities, sales tax gains, and Section 14A/115JB adjustments were rightly decided in… Read More »

Ex-Gratia Exemption Under Section 10(10B) Rejection of Form 10AB for Selecting Incorrect Section 12A Clause Is Curable Procedural Defect

By | July 23, 2026
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Ex-Gratia Exemption Under Section 10(10B) Rejection of Form 10AB for Selecting Incorrect Section 12A Clause Is Curable Procedural Defect Ex-Gratia Exemption Under Section 10(10B) Rejection of Form 10AB for Selecting Incorrect Section 12A Clause Is Curable Procedural Defect Issue Whether the rejection of a trust’s Form No. 10AB registration application solely due to selecting an… Read More »

Disallowance of Demerged Losses Upheld while ESOP Expenses Allowed and Deferred Income Addition Deleted.

By | July 23, 2026
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Disallowance of Demerged Losses Upheld while ESOP Expenses Allowed and Deferred Income Addition Deleted. Issue Whether, for Assessment Year 2015–16: The disallowance of prior period expenses without due verification requires remand to the Assessing Officer; ESOP discount expenses claimed upon actual option exercise are allowable business expenditure under Section 37(1); Accumulated business losses and unabsorbed… Read More »