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 »
Surrendering tenancy rights for a larger redeveloped flat constitutes capital gains qualifying for Section 54F exemption. Issue Whether the receipt of a larger flat as permanent alternate accommodation under a redevelopment arrangement in lieu of surrendering tenancy rights constitutes property received for inadequate consideration taxable under section 56(2)(x), or a transfer of a capital asset… Read More »
Investment in a new house jointly with a wife qualifies for full Section 54 deduction. Issue Whether an individual assessee can claim a tax deduction under Section 54 on the entire investment made in a new residential property when the property is purchased jointly in the names of the assessee and his wife. Facts The… Read More »
Jurisdiction objections must be timely, DTAA benefits apply to DDT, and accrued provisions are allowable. Issue Whether an assessment order passed by an Additional CIT authorized under section 120(4)(b) is void ab initio if the assessee fails to raise a jurisdictional objection within the statutory timeline of section 124. Whether Dividend Distribution Tax (DDT) levied… Read More »
Reversal of previously taxed bonus provisions and accrued year-end brokerage liabilities are deductible business expenses. Reversal of previously taxed bonus provisions and accrued year-end brokerage liabilities are deductible business expenses. Issue Whether an income-tax deduction is permissible for the reversal of a bonus provision that had already been subjected to tax in preceding years under… Read More »
CIT(E) cannot dilute a binding jurisdictional High Court precedent by inserting speculative future Supreme Court appeal caveats in registration orders. Issue Whether the Commissioner of Income-tax (Exemptions) [CIT(E)], while granting fresh registration and approval under sections 12AB and 80G based on a binding jurisdictional High Court precedent, can legally incorporate a caveat making the grant… Read More »
No TDS applies to stockist margins, unexercised ESOPs, or statutory interest paid to MSME vendors Issue Issue I (Trade Discount vs. Commission): Whether margins retained by stockists under regulatory/quality controls represent taxable “commission” requiring TDS under Section 194H. Issue II (ESOP TDS Timing): Whether the TDS obligation on ESOPs under Section 192 triggers at the… Read More »
No Penalty Lies for Non-Reporting of PE-Unrelated Transactions and CIT(A) Cannot Enhance on New Grounds Issue Issue I (Section 271AA Penalty): Whether a transfer pricing penalty under Section 271AA for non-reporting of an international transaction is sustainable when the transaction was executed directly by the foreign head office without any effective nexus to its Indian… Read More »
Consequential Assessment Automatically Becomes Void Once the Underlying Section 263 Revision Order Is Set Aside Issue Whether a consequential assessment order passed by the Assessing Officer pursuant to a revisionary direction under Section 263 can survive or be adjudicated on merits after the ITAT has quashed the underlying Section 263 revision order. Facts The assessee,… Read More »
Demonetization Cash Deposits Supported by Valid Marriage Gifts and Savings Cannot Be Treated as Unexplained Issue Whether cash deposits made by a salaried individual during the demonetization period can be treated as unexplained money under Section 69A and taxed under Section 115BBE, when the source is attributed to marriage gifts, household savings, and medical contingency… Read More »