Tag Archives: IN THE ITAT MUMBAI BENCH

Approved Resolution Plan under IBC binds all statutory authorities, extinguishing prior tax claims and terminating pending Income Tax proceedings.

By | September 3, 2026
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Approved Resolution Plan under IBC binds all statutory authorities, extinguishing prior tax claims and terminating pending Income Tax proceedings. Issue Whether an Income Tax Appellate Tribunal (ITAT) is bound by an approved Resolution Plan under Section 31 of the Insolvency and Bankruptcy Code, 2016 (IBC), requiring the dismissal of Revenue’s pending tax appeals and allowing… Read More »

Statutory Refund Adjustment Priority Requires Clearing Accrued Section 244A Interest Before Appropriating Principal Tax

By | September 2, 2026
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Statutory Refund Adjustment Priority Requires Clearing Accrued Section 244A Interest Before Appropriating Principal Tax Issue Whether the Revenue is required to adjust the interest component first before appropriating the principal tax amount while crediting a refund to the assessee under Section 244A of the Income-tax Act, 1961 (Section 437 of the Income-tax Act, 2025). Facts… Read More »

NaFAC and JAO hold valid jurisdiction for faceless reassessments, but natural justice demands remanding ex-parte additions due to assessee’s mental illness.

By | September 2, 2026
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NaFAC and JAO hold valid jurisdiction for faceless reassessments, but natural justice demands remanding ex-parte additions due to assessee’s mental illness. Issue Whether National Faceless Assessment Centre (NaFAC) and Jurisdiction Assessment Officer (JAO) possess valid jurisdiction under Section 144B and Section 151A read with CBDT circulars/notifications to conduct faceless reassessment proceedings under Section 147 of… Read More »

MEIS export scheme benefits offset operational costs and are taxable as revenue receipts under Section 2(24)(xviii).

By | September 2, 2026
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MEIS export scheme benefits offset operational costs and are taxable as revenue receipts under Section 2(24)(xviii). Issue Whether benefits/rewards received by an assessee under the Merchandise Exports from India Scheme (MEIS) of the Foreign Trade Policy 2015 constitute capital receipts or taxable revenue receipts in light of the purpose test and the insertion of Section… Read More »

Depreciation Claimed on Non-Compete Fees Is Unsustainable, But Goodwill Arising from Slump Sale Qualifies for Depreciation

By | September 2, 2026
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Depreciation Claimed on Non-Compete Fees Is Unsustainable, But Goodwill Arising from Slump Sale Qualifies for Depreciation Issue Whether depreciation can be claimed under Section 32 on non-compete fees recognized during a slump sale, or if it must be treated strictly as revenue expenditure under Section 37(1). Whether sixth proviso to Section 32(1), Explanation 7 to… Read More »

CIT(E) cannot reject Section 12AB registration by overstepping into assessment-stage matters or misclassifying charitable activities under the residual proviso.

By | September 1, 2026
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CIT(E) cannot reject Section 12AB registration by overstepping into assessment-stage matters or misclassifying charitable activities under the residual proviso. Issue Whether the CIT(E) exceeded his jurisdiction under Section 12AB of the Income-tax Act by examining activity-wise profitability, commercial receipts, and accounting presentation to reject registration renewal, rather than restricting the scope of inquiry strictly to… Read More »

PMS fees are deductible from capital gains as two plausible legal interpretations exist under Section 48.

By | August 31, 2026
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PMS fees are deductible from capital gains as two plausible legal interpretations exist under Section 48. Issue Whether Portfolio Management Service (PMS) fees/charges can be claimed as a deduction under Section 48 of the Income-tax Act, 1961 / Section 72 of the Income-tax Act, 2025 as expenditure incurred wholly and exclusively in connection with the… Read More »

Notional rent cannot be taxed under Other Sources without evidence, and disallowances must be restricted or deleted.

By | August 31, 2026
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Notional rent cannot be taxed under Other Sources without evidence, and disallowances must be restricted or deleted. Issue Whether notional rent from a sister concern can be taxed under “Income from Other Sources” without evidence of actual receipt or entitlement. Whether building expenses attributable to a sister concern can be disallowed when income is assessable… Read More »

Absence of a formal trust deed cannot preclude Section 12AB registration and Section 80G approval.

By | August 31, 2026
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Absence of a formal trust deed cannot preclude Section 12AB registration and Section 80G approval. Issue Whether an old charitable trust established without a formal written trust deed can be denied renewal of registration under Section 12AB merely due to the non-production of an instrument, when alternative documents evidencing its creation and existence are provided… Read More »

Deletion of secondary TP adjustments, adoption of LIBOR benchmarking, and statutory disallowance of education cess.

By | August 31, 2026
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Deletion of secondary TP adjustments, adoption of LIBOR benchmarking, and statutory disallowance of education cess. Issue Whether transfer pricing adjustments on exclusivity/transition payments, benchmarking of foreign currency loans, Section 14A disallowances, Section 10A export turnover calculations, TDS credit entitlement, and education cess deductions are sustainable under the Income-tax Act. Facts TP Adjustments on Interest: The… Read More »