No TDS Applies to Cost Reimbursements Where Tax Was Deducted at Source Initially No TDS Applies to Cost Reimbursements Where Tax Was Deducted at Source Initially Issues TDS on Reimbursement of Apportioned Expenses: Whether Section 40(a)(ia) applies to payments made by an assessee to an association towards reimbursement of its share of legal expenses where… Read More »
Addition Made Solely on Survey Statement Without Corroborative Material Under Section 68 Is Unsustainable Issue Whether an addition made under Section 68 of the Income-tax Act, 1961 solely on the basis of a statement recorded during a survey under Section 133A, without any independent corroborative evidence, is legally sustainable. Facts Business & Survey: The assessee-company,… Read More »
Section 50C Cannot Be Invoked for Tenancy Agreements Without Proof of Ownership Transfer Issue Whether the deeming provisions of Section 50C of the Income-tax Act, 1961 can be invoked to substitute stamp duty value as full value of consideration in the case of a registered tenancy agreement, without establishing an actual transfer of ownership rights… Read More »
Taxability of Written-Back Provisions Depends on Prior Deductions while Refunds Granted Must Be First Adjusted Against Interest Issue Whether written-back employee benefit provisions are taxable under Section 41(1) if they were not allowed as deductions in earlier assessment years. Whether interest under Section 234D on excess refund requires recomputation following modifications to the assessment by… Read More »
Recharacterization of Capital Gains as Dividend With Reduced Tax Liability Does Not Warrant Penalty Under Section 270A Issue Whether initiation of penalty proceedings under Section 270A for under-reporting or misreporting of income is legally sustainable when the recharacterization of capital gains into dividend income by the Assessing Officer results in no increase in total assessed… Read More »
Sole Executor Administering Deceased Estate Must Be Assessed as an Individual at Normal Slab Rates Issue Whether the income of a deceased person’s estate administered by a sole executor should be assessed in the hands of the executor as an individual at normal slab rates under Section 168, rather than as an Artificial Juridical Person… Read More »
Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2 Invocation of Section 153A Beyond Six Years Is Void Without Identifiable Asset Under Explanation 2 Issue Whether the assumption of jurisdiction under Section 153A beyond the ordinary six-year block is legally sustainable when the seized material fails to establish that… Read More »
LTCG Exemption and Commission Additions for Penny Stocks Cannot Stand Without Direct Evidence Against Assessee Issue Whether the Assessing Officer is justified in treating long-term capital gains (LTCG) from share sales as unexplained cash credit under Section 68 and adding 3% estimated commission under Section 69C based solely on generic Investigation Wing reports regarding penny… Read More »
Irrecoverable VAT/CST Refunds and Valid Debt Write-Offs Are Allowable Deductions Under Income-Tax Act Issue Whether write-offs of irrecoverable VAT/CST refunds and trade debts with proper accounting entries constitute allowable deductions under Sections 28/37(1) or 36(1)(vii), and whether Section 14A interest disallowance applies when own interest-free funds exceed investments. Facts Issue I (Write-off of VAT/CST Refund):… Read More »
Absence of Express Irrevocability Clause Cannot Justify Rejection of Section 80G Approval Issue Whether the CIT(E) can reject an application for regular approval under Section 80G/12AB on the ground that the trust deed lacks an express irrevocability or dissolution clause, and whether selecting “Yes” to the irrevocability question in Form 10AB constitutes furnishing false or… Read More »