Tag Archives: IN THE ITAT MUMBAI BENCH

Notional interest on interest-free loans to a non-viable subsidiary cannot be taxed under the real income principle.

By | June 19, 2026
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Notional interest on interest-free loans to a non-viable subsidiary cannot be taxed under the real income principle. Issue Whether the tax authorities are justified in adding and taxing notional interest under Section 5 on long-term interest-free advances given to a non-viable subsidiary company, when both entities agreed not to charge interest and judicial consistency supports… Read More »

Excessive Share Premium Cannot Be Taxed as Unexplained Cash Credit Under Section 68 if Identity, Creditworthiness, and Genuineness Are Proven

By | June 18, 2026
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Excessive Share Premium Cannot Be Taxed as Unexplained Cash Credit Under Section 68 if Identity, Creditworthiness, and Genuineness Are Proven Issue Whether an investment toward share premium received by an assessee-company from its holding company can be treated as an unexplained cash credit under Section 68 merely because the Assessing Officer (AO) deems the valuation… Read More »

Consistency in Transfer Pricing Methods and Business Deductions Upheld, While Additional Depreciation Requires Integral New Capital Acquisition

By | June 18, 2026
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Consistency in Transfer Pricing Methods and Business Deductions Upheld, While Additional Depreciation Requires Integral New Capital Acquisition Issue Whether the Internal Transactional Net Margin Method (TNMM) can be replaced by the Comparable Uncontrolled Price (CUP) method if the Tribunal and High Court have consistently accepted TNMM for identical transactions in previous years. Whether Transfer Pricing… Read More »

Purely Equity Debentures Excluded From MAT Transition Amount And Rule EightD Disallowance Set Aside For Want Of Satisfaction

By | June 16, 2026
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Purely Equity Debentures Excluded From MAT Transition Amount And Rule EightD Disallowance Set Aside For Want Of Satisfaction Issue Whether fully convertible debentures (ZOFCDs/FCDs) holding purely equity components without any liability element can be classified as Compound Financial Instruments (CFIs) or “Other Equity” to trigger a book profit increase via the MAT transition amount under… Read More »

Matter Remanded to Assessing Officer for De Novo Adjudication Due to Lack of Opportunity to Explain NRI Investments

By | June 12, 2026
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Matter Remanded to Assessing Officer for De Novo Adjudication Due to Lack of Opportunity to Explain NRI Investments Matter Remanded to Assessing Officer for De Novo Adjudication Due to Lack of Opportunity to Explain NRI Investments Issue Whether an ex-parte assessment order treating time deposits, foreign currency purchases, and bank interest as unexplained investments and… Read More »

Exempt Investments Without Yield and Section 14A Disallowances Cannot Alter Book Profits or Capital Subsidies

By | June 12, 2026
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Exempt Investments Without Yield and Section 14A Disallowances Cannot Alter Book Profits or Capital Subsidies Issue Issue 1 (Section 14A vs. Rule 8D): Whether investments that did not yield any exempt income during the year can be included in the “average value of investments” for computing disallowance under Rule 8D. Issue 2 (Section 115JB Book… Read More »

Agricultural Land Outside Notified Municipal Limits Lacking Commercial Conversion Is Not a Capital Asset

By | June 11, 2026
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Agricultural Land Outside Notified Municipal Limits Lacking Commercial Conversion Is Not a Capital Asset Issue Whether a parcel of land sold by the assessee constitutes a “capital asset” under Section 2(14) of the Income-tax Act, thereby attracting capital gains tax, when the land is located outside notified municipal limits, is classified as agricultural in revenue… Read More »