Penalty Under Section 270A Is Valid for Non-Filing Under Section 139(1) Even if Returned Income Is Accepted Post-Notice Under Section 148 Issue Whether penalty under Section 270A(2)(b) for under-reporting of income is leviable where an assessee fails to file a return of income under Section 139(1) but subsequently files a return in response to a… Read More »
Reassessment Passed Under Section 147 Without First Disposing Objections by Separate Order Quashed 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 to the recorded reasons for reopening by a separate speaking order prior to completing the… Read More »
Reinsurance Cession Disallowance Deleted and 60% Depreciation Allowed on Independent Business Computer Software Issue Whether an Assessing Officer can disallow reinsurance premiums exceeding regulatory limits when IRDAI raises no objection, and whether standalone business software qualifies for depreciation under the higher rate for “Computers including Computer Software”. Facts Reinsurance Premium Disallowance: The assessee, a general… Read More »
ITAT partial relief to bank on actuarial liabilities, NPA interest, and MAT applicability issues. ITAT partial relief to bank on actuarial liabilities, NPA interest, and MAT applicability issues. Issues Whether actuarially determined provisions for employee benefits (pension, leave, and long-term awards) constitute allowable accrued business expenditure. Whether Section 14A disallowance applies only to investments yielding… Read More »
No TDS obligation triggers on estimated year-end provisions reversed next year without identified payees, nor under Section 201 if expenditure is disallowed under Section 40(a)(ia). Issue Whether an assessee can be treated as an “assessee-in-default” under Section 201(1) for non-deduction of TDS on temporary, estimated year-end provisions that lack identified payees and are reversed in… Read More »
Ad-hoc expense disallowances remanded for fresh verification while provision for bad debts allowed. Issue Whether ad-hoc 10% disallowance of promotional expenses, disallowance of bad debts provision, unserved Section 143 intimation-based income enhancements, and consequential interest and penalty levies under Section 234A/270A are legally sustainable. Facts Ad-Hoc Expense Disallowance: The Assessing Officer (AO) made an ad-hoc… Read More »
Tax under Section 115BBI cannot be levied on a reporting error without underlying specified income. Tax under Section 115BBI cannot be levied on a reporting error without underlying specified income. Issue Whether an arithmetic mismatch or reporting oversight in filing tax return schedules empowers the Revenue to levy tax under Section 115BBI via Section 143(1)… Read More »
Provision for bad debts is allowable, and income enhancement without serving Section 143 intimation is illegal. Issue Whether a deduction for the provision for bad and doubtful debts under Section 36(1)(vii) is allowable, and whether an enhancement of returned income based on an unserved Section 143 intimation is legally sustainable. Facts Deduction for Bad Debts:… Read More »
Surplus of co-operative society collected from members and timely returns are exempt from tax. Issue Surplus of co-operative society collected from members and timely returns are exempt from tax. Whether surplus maintenance collections from members of a co-operative premises society are non-taxable under the doctrine of mutuality, and whether fee under Section 234F for late… Read More »
Ind AS accounting entries cannot override tax provisions or trigger double taxation on income. Ind AS accounting entries cannot override tax provisions or trigger double taxation on income. Issue Whether book entries under Ind AS dictate taxability, leading to double taxation or improper disallowances under the Income-tax Act, and the validity of statutory claims regarding… Read More »