Tag Archives: IN THE ITAT MUMBAI BENCH

Penalty Under Section 271(1)(c) Inapplicable Where Prepaid Tax Exceeds Assessed Tax In Reassessment Proceedings

By | August 19, 2026
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Penalty Under Section 271(1)(c) Inapplicable Where Prepaid Tax Exceeds Assessed Tax In Reassessment Proceedings Penalty Under Section 271(1)(c) Inapplicable Where Prepaid Tax Exceeds Assessed Tax In Reassessment Proceedings Issue Whether a penalty for concealment of income under Section 271(1)(c) read with Explanation 3 and Explanation 4(c) can be levied when the tax deducted at source… Read More »

Depreciation Is Allowable On Entire Contractual Cost Of IPL Franchise And TP Adjustments Require Mandatory TPO Reference

By | August 19, 2026
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Depreciation Is Allowable On Entire Contractual Cost Of IPL Franchise And TP Adjustments Require Mandatory TPO Reference Issue Whether “actual cost” under Section 43(1) for claiming depreciation on intangible assets (IPL franchise rights) means the entire contractual consideration or is limited to the actual instalments paid during the relevant year. Whether the Assessing Officer /… Read More »

Renewal Of Registration Under Section 12AB Cannot Be Rejected By Insisting On Pre-2021 Registration

By | August 19, 2026
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Renewal Of Registration Under Section 12AB Cannot Be Rejected By Insisting On Pre-2021 Registration Issue Whether the CIT(E) can reject an application for renewal of registration under Section 12AB by invalidating the assessee’s subsisting registration on the ground that it lacked registration under Section 12A/12AA prior to April 1, 2021, without formal cancellation. Whether rejecting… Read More »

ITAT rules that profits earned by a Indian bank’s foreign branches (PEs) are non-taxable in India under Article 7(1) of applicable DTAAs.

By | August 18, 2026
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ITAT rules that profits earned by a Indian bank’s foreign branches (PEs) are non-taxable in India under Article 7(1) of applicable DTAAs. ITAT rules that profits earned by a Indian bank’s foreign branches (PEs) are non-taxable in India under Article 7(1) of applicable DTAAs. Issue Whether the business profits generated by the overseas branches (Permanent… Read More »

Unsubstantiated Additions Under Sections 68 and 69C for Repaid Unsecured Loans Deleted

By | August 18, 2026
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Unsubstantiated Additions Under Sections 68 and 69C for Repaid Unsecured Loans Deleted Unsubstantiated Additions Under Sections 68 and 69C for Repaid Unsecured Loans Deleted Issue Whether additions made towards unexplained cash credits under Section 68 and alleged commission expenses under Section 69C can be sustained when the unsecured loans were received via banking channels, bore… Read More »

No Movement of Shares in DEMAT Means No Transfer or Cash Addition; Write-Off Is Not Unexplained Expenditure

By | August 18, 2026
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No Movement of Shares in DEMAT Means No Transfer or Cash Addition; Write-Off Is Not Unexplained Expenditure Issue Whether an addition under Section 68 can be sustained as unexplained cash credit on a notional share transaction where no actual transfer of shares occurred in the DEMAT account, and whether the validity of such transaction warrants… Read More »

Recharacterisation of CCDs as Equity Set Aside and Bad Debt Write-Off Allowed

By | August 18, 2026
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Recharacterisation of CCDs as Equity Set Aside and Bad Debt Write-Off Allowed Issue Whether the Transfer Pricing Officer (TPO) can re-characterise Compulsorily Convertible Debentures (CCDs) as equity instruments prior to conversion to determine the Arm’s Length Price (ALP) of interest at Nil under the ‘Other Method’ instead of evaluating the CUP Method. Whether bad debts… Read More »

No Further Disallowance Required for Cash Sales Promotion; Charter Hire and Victualling Disallowances Deleted

By | August 17, 2026
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No Further Disallowance Required for Cash Sales Promotion; Charter Hire and Victualling Disallowances Deleted Issue Whether any further disallowance of sales promotion, gift, and sundry expenses under Section 37(1) was warranted when the assessee had already suo motu disallowed 50% of the cash-incurred expenditure. Whether disallowance under Section 40A(2)(b) on charter hire charges paid to… Read More »

TNMM Trumps RPM for Distributors Performing Value-Added Services; Double Taxation Issue Remanded for AO Verification

By | August 15, 2026
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TNMM Trumps RPM for Distributors Performing Value-Added Services; Double Taxation Issue Remanded for AO Verification Issue Whether Resale Price Method (RPM) can be applied instead of Transactional Net Margin Method (TNMM) as the Most Appropriate Method (MAM) when a distributor carries out extensive post-import value additions on medical equipment. Whether an amount credited to the… Read More »

Expatriate Salary Paid by Foreign Head Office Exclusively for Indian PE Is Fully Allowable

By | August 15, 2026
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Expatriate Salary Paid by Foreign Head Office Exclusively for Indian PE Is Fully Allowable Issue Whether expatriate salary expenditure initially paid by a foreign bank’s Head Office for employees working exclusively for its Indian Permanent Establishment (PE) constitutes “Head Office expenditure” under Section 44C, or if it is fully allowable as a business deduction under… Read More »