Tag Archives: IN THE ITAT MUMBAI BENCH

AO must allow consequential Section 35(2AB) relief upon DSIR revision and independently examine Section 35(1)(i) claims.

By | August 3, 2026
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AO must allow consequential Section 35(2AB) relief upon DSIR revision and independently examine Section 35(1)(i) claims. AO must allow consequential Section 35(2AB) relief upon DSIR revision and independently examine Section 35(1)(i) claims. Issue Consequential Relief on DSIR Revision: Whether an assessee is entitled to consequential weighted deduction under Section 35(2AB) if DSIR revises or enhances… Read More »

DSIR certification rules shift weighted deduction binding limits post-01.07.2016, while balance additional depreciation remains claimable in succeeding years.

By | August 3, 2026
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DSIR certification rules shift weighted deduction binding limits post-01.07.2016, while balance additional depreciation remains claimable in succeeding years. Issue R&D Weighted Deduction (Pre & Post-01.07.2016): Whether DSIR quantification in Form 3CL is binding for computing weighted deduction under Section 35(2AB) for AY 2016-17 versus AYs 2017-18 to 2018-19 following the amendment to Rule 6(7A). Additional… Read More »

Interest Earned by Co-operative Housing Society from Co-operative Bank Investments Qualifies for Section 80P(2)(d) Deduction

By | August 1, 2026
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Interest Earned by Co-operative Housing Society from Co-operative Bank Investments Qualifies for Section 80P(2)(d) Deduction Issue Whether interest income earned by a co-operative housing society from fixed deposits placed with co-operative banks is eligible for deduction under Section 80P(2)(d) of the Income-tax Act, 1961. Facts The assessee is a co-operative housing society that invested surplus… Read More »

ITAT Rules Interest Paid to Overseas Head Office Deductible and Restricts Guarantee Commission Adjustment

By | August 1, 2026
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ITAT Rules Interest Paid to Overseas Head Office Deductible and Restricts Guarantee Commission Adjustment Issue Whether interest paid by an Indian Permanent Establishment (PE) to its foreign Head Office is deductible, and whether Transfer Pricing adjustments on guarantee commission must give credit for amounts already recovered from the Associated Enterprise (AE). Facts The assessee is… Read More »

ITAT Remands Defect Liability Expense Issue and Allows Bad Debts and PF/ESI Deductions

By | August 1, 2026
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ITAT Remands Defect Liability Expense Issue and Allows Bad Debts and PF/ESI Deductions Issue Whether expenses incurred during a contractual Defect Liability Period (DLP) are allowable under Section 37(1), bad debts written off meet the criteria under Section 36(1)(vii), and employees’ PF/ESI contributions deposited within statutory due dates are allowable under Section 36(1)(va). Facts Defect… Read More »

ITAT Rules Indian PE Interest Income, Shared Hub Costs, and MTM Losses Non-Taxable or Deductible

By | August 1, 2026
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ITAT Rules Indian PE Interest Income, Shared Hub Costs, and MTM Losses Non-Taxable or Deductible ITAT Rules Indian PE Interest Income, Shared Hub Costs, and MTM Losses Non-Taxable or Deductible Issue Whether interest credited by Head Office, shared regional hub expenses, broken period interest, expatriate salary reimbursements, year-end Mark-to-Market (MTM) losses on forex contracts, and… Read More »

Co-Operative Housing Society Is Entitled to Section 80P(2)(d) Deduction on Interest Earned From Co-Operative Banks

By | July 30, 2026
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Co-Operative Housing Society Is Entitled to Section 80P(2)(d) Deduction on Interest Earned From Co-Operative Banks Issue Whether interest income earned by a co-operative housing society from fixed deposits maintained with co-operative banks is eligible for deduction under Section 80P(2)(d) of the Income-tax Act, 1961. Facts Assessee Profile: The assessee is a co-operative housing society registered… Read More »

Write-off of Expired Inventory and Bad Debts Supported by Evidence Is Allowable

By | July 30, 2026
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Write-off of Expired Inventory and Bad Debts Supported by Evidence Is Allowable Issue Whether the write-off of expired finished goods inventory under Section 37(1) is allowable as a business expenditure when supported by physical verification and destruction norms. Whether the write-off of bad debts under Section 36 is allowable when substantiated by debtor details, sale… Read More »

Interest from Head Office, Hub Costs, Broken-Period Interest, Salary Reimbursements, MTM Losses, and Securities Diminution Are Allowable

By | July 30, 2026
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Interest from Head Office, Hub Costs, Broken-Period Interest, Salary Reimbursements, MTM Losses, and Securities Diminution Are Allowable Issue Whether interest credited to an Indian Permanent Establishment (PE) branch by its foreign Head Office/overseas branches is taxable in India under Section 9 read with Article 7 of the India-USA DTAA. Whether centralized operational hub expenses paid… Read More »

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 »