Section 154 Limitation Runs From Reassessment Order, and Capital Subsidy Excludes From MAT Section 154 Limitation Runs From Reassessment Order, and Capital Subsidy Excludes From MAT Issue Whether the limitation period for filing a Section 154 rectification application is calculated from the original assessment order or the reassessment order, especially when the reassessment dispute was… Read More »
Section 80-IA Deduction Capped at Gross Total Income, PF Interest Allowable, and Section 14A Inapplicable Without Exempt Income Issue Section 80-IA Capping: Whether deduction under Section 80-IA can be set off against the Gross Total Income (including Capital Gains) up to the limit prescribed under Section 80A(2), or if it must be restricted solely to… Read More »
CIT(E) Cannot Invalidate Existing Section 12AB Registration Or Reject Renewal Without Granting Natural Justice CIT(E) Cannot Invalidate Existing Section 12AB Registration Or Reject Renewal Without Granting Natural Justice Issue Whether the Commissioner of Income Tax (Exemption) [CIT(E)], while processing a renewal application in Form No. 10AB, has the jurisdiction to declare an existing Section 12AB… Read More »
Rejection of Section 12AB Renewal Solely Due to FCRA Non-Renewal Without Independent Satisfaction Warrants Remand Issue Whether the Commissioner of Income Tax (Exemption) [CIT(E)] can reject a charitable trust’s application for renewal of registration under Section 12AB solely on the ground that its Foreign Contribution (Regulation) Act (FCRA) registration renewal was rejected, without recording independent… Read More »
Registered Venture Capital Funds Can Claim Sections 10(34) and 10(35) Exemptions Simultaneously With 10(23FB) Issue Whether a SEBI-registered Venture Capital Fund (VCF) claiming exemption under Section 10(23FB) is barred from simultaneously claiming exemptions under Sections 10(34) (dividend income) and 10(35) (income from mutual fund units) of the Income-tax Act, 1961, for Assessment Year 2016-17. Facts… Read More »
Pure Equity Debentures Excluded from MAT Transition Amount; Section 14A Disallowance Fails Without Recorded Dissatisfaction Pure Equity Debentures Excluded from MAT Transition Amount; Section 14A Disallowance Fails Without Recorded Dissatisfaction Issue Whether Fully Convertible Debentures (FCDs/ZOFCDs) consisting purely of equity components can be categorized as Compound Financial Instruments (CFIs) or “other equity” to trigger a… Read More »
Policy servicing fees to aggregators are allowable deductions, and Section 14A disallowance is inapplicable to insurance businesses. Issue Whether payments made by a general insurance company to aggregators/intermediaries for policy servicing and support activities can be disallowed under Explanation 1 to Section 37(1) as an expense prohibited by law, in the absence of any penal… Read More »
Procedural technicalities cannot override the determination of correct taxable income when a return contains genuine, inadvertent errors. Procedural technicalities cannot override the determination of correct taxable income when a return contains genuine, inadvertent errors. Issue Whether the delay in filing an appeal should be condoned and the matter remanded to the Assessing Officer for a… Read More »
Section 87A rebate is available against tax on short-term capital gains under section 111A. Issue Whether a resident individual governed by the default tax regime under section 115BAC(1A) is entitled to a tax rebate under section 87A against the tax payable on short-term capital gains chargeable under section 111A, provided their total income does not… Read More »
Timely filing crystallizes the right to carry forward losses, which subsequent reporting omissions cannot extinguish. Issue Whether an assessee can be denied the benefit of carrying forward and setting off losses validly determined in a timely filed return under section 139(1) for a particular assessment year, merely due to an inadvertent omission or technical error… Read More »