Tag Archives: IN THE ITAT MUMBAI BENCH

Mandatory Interest Provisions under Sections 234C and 244A Require Factual Verification and Accurate Recomputation by AO

By | August 5, 2026
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Mandatory Interest Provisions under Sections 234C and 244A Require Factual Verification and Accurate Recomputation by AO Issue Whether the levy of deferment interest under Section 234C requires factual verification of advance tax liability and payment dates at the level of the Assessing Officer. Whether a claim regarding short grant of statutory interest on tax refund… Read More »

Reassessment Beyond Three Years Under Section 148 Void Without Establishing Section 149(1)(b) Conditions

By | August 5, 2026
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Reassessment Beyond Three Years Under Section 148 Void Without Establishing Section 149(1)(b) Conditions Reassessment Beyond Three Years Under Section 148 Void Without Establishing Section 149(1)(b) Conditions Issue Whether a reassessment notice issued under Section 148 beyond the three-year limitation period is legally valid when the Assessing Officer fails to demonstrate that seized materials directly relate… Read More »

Section 14A does not apply to non-income receipts governed by the doctrine of mutuality.

By | August 5, 2026
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Section 14A does not apply to non-income receipts governed by the doctrine of mutuality. Issue Whether Section 14A of the Income-tax Act, 1961 applies to interest receipts from head office/overseas branches that fall outside the definition of ‘income’ under Sections 2(24) and 4 due to the doctrine of mutuality. Facts The assessee, a foreign bank… Read More »

Where Section 11(6) bars depreciation, capital expenditure applies as income, but pre-operative expenses cannot be deferred.

By | August 5, 2026
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Where Section 11(6) bars depreciation, capital expenditure applies as income, but pre-operative expenses cannot be deferred. Issue Whether an assessee-trust disallowed from claiming depreciation under Section 11(6) is entitled to claim the actual capital expenditure incurred during the year as application of income under Section 11. Whether charitable organizations can defer pre-operative expenditure to be… Read More »

NRI desk costs fall under Section 44C while Section 36(1)(viia) deduction precedes Section 44C computation.

By | August 5, 2026
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NRI desk costs fall under Section 44C while Section 36(1)(viia) deduction precedes Section 44C computation. Issue Whether overseas branch expenses incurred for operating NRI desks soliciting deposits constitute ‘head office expenditure’ under Section 44C or are allowable as separate business expenses under Section 37(1). Whether data processing charges and overseas branch expenses attributable to Indian… Read More »

Reassessment is invalid if AO fails to dispose of assessee’s objections via separate speaking order.

By | August 4, 2026
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Reassessment is invalid if AO fails to dispose of assessee’s objections via separate speaking order. Issue Whether a reassessment order passed under Section 147 read with Section 143(3) is legally valid when the Assessing Officer fails to dispose of the assessee’s objections against the recorded reasons for reopening by a separate speaking order before completing… Read More »

CIT(E) Cannot Dilute Section 12AB Registration Order by Incorporating Caveats Based on Potential Future Supreme Court Challenges

By | August 4, 2026
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CIT(E) Cannot Dilute Section 12AB Registration Order by Incorporating Caveats Based on Potential Future Supreme Court Challenges Issue Whether the Commissioner of Income-tax (Exemption) can validly attach caveats or conditional observations to a Section 12AB registration order based on a potential future Supreme Court challenge after accepting a binding High Court precedent. Facts The assessee-trust… Read More »

CIT(E) Cannot Dilute Section 12AB Registration Order by Incorporating Caveats Based on Potential Future Supreme Court Challenges

By | August 4, 2026
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CIT(E) Cannot Dilute Section 12AB Registration Order by Incorporating Caveats Based on Potential Future Supreme Court Challenges CIT(E) Cannot Dilute Section 12AB Registration Order by Incorporating Caveats Based on Potential Future Supreme Court Challenges Issue Whether the Commissioner of Income-tax (Exemption) can validly attach caveats or conditional observations to a Section 12AB registration order based… Read More »

ITAT Rules in Favor of Public Sector Bank Across Key Corporate Tax and Accounting Disallowances

By | August 4, 2026
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ITAT Rules in Favor of Public Sector Bank Across Key Corporate Tax and Accounting Disallowances ITAT Rules in Favor of Public Sector Bank Across Key Corporate Tax and Accounting Disallowances Issue FCTR Balance & Sec 43AA: Whether the opening balance of Foreign Currency Translation Reserve (FCTR) accumulated from non-integral foreign operations in preceding years can… Read More »

Stamp duty valuation for Section 56(2)(x) applies based on initial allotment if banking payments occurred.

By | August 3, 2026
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Stamp duty valuation for Section 56(2)(x) applies based on initial allotment if banking payments occurred. Issue Whether an allotment letter issued by a builder—followed by partial consideration paid via banking channels—qualifies as an “agreement” for the purpose of the proviso to Section 56(2)(x)(b), entitling the assessee to adopt the stamp duty value as on the… Read More »