Tag Archives: IN THE ITAT PUNE BENCH

Export Commission Outside Scope of Tax Deduction, Technical Fees Taxable, and Section 14A Matter Remanded

By | October 31, 2026
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Export Commission Outside Scope of Tax Deduction, Technical Fees Taxable, and Section 14A Matter Remanded Issue Whether payments to non-residents for export commission and brochure distribution are exempt from TDS under Section 9(1)(vii)(b), whether import inspection services constitute Fees for Technical Services (FTS) requiring TDS under Section 40(a)(i), and whether a Section 14A disallowance must… Read More »

Corporate guarantee to AE is an international transaction ineligible for Section 80-IAB deduction.

By | October 14, 2026
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Corporate guarantee to AE is an international transaction ineligible for Section 80-IAB deduction. Issue Corporate Guarantee as International Transaction: Whether providing an irrevocable and unconditional corporate guarantee to an Associated Enterprise (AE) constitutes an “international transaction” requiring determination of the Arm’s Length Price (ALP). Eligibility for Section 80-IAB Deduction: Whether a corporate guarantee fee (or… Read More »

ESOP Expenditure Allowed, TP Comparable Selection Principles Benchmark Benchmarking Adjustments Clarified

By | October 10, 2026
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ESOP Expenditure Allowed, TP Comparable Selection Principles Benchmark Benchmarking Adjustments Clarified Issue Whether ESOP discount/expenditure is allowable as a deductible business expense under Section 37(1). Whether royalty payments, trading/manufacturing segments, IT/ITES/software support services, and digital marketing support services transfer pricing (TP) benchmarking adjustments require exclusion of functionally dissimilar companies, consideration of extraordinary events, and verification… Read More »

ITAT Recalls Order and Restores Appeal as Assessee Intended Only Partial Withdrawal Under MAP Scheme

By | October 9, 2026
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ITAT Recalls Order and Restores Appeal as Assessee Intended Only Partial Withdrawal Under MAP Scheme ITAT Recalls Order and Restores Appeal as Assessee Intended Only Partial Withdrawal Under MAP Scheme Issue Whether the Appellate Tribunal should recall its earlier order and restore an appeal under Section 254(2) when an order dismissing the entire appeal as… Read More »

PBDIT Adopted as PLI for Heavy Fixed Asset Investments and Mandatory Loss Set-Off Upheld

By | October 9, 2026
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PBDIT Adopted as PLI for Heavy Fixed Asset Investments and Mandatory Loss Set-Off Upheld Issue Selection of Profit Level Indicator (PLI): Whether Profit Before Depreciation, Interest, and Tax (PBDIT) should be adopted as the most appropriate PLI under TNMM when an assessee’s net profit is significantly affected by high depreciation resulting from substantial investments in… Read More »

Royalty Benchmarked Under Aggregated TNMM Cannot Be Segregated and Separately Adjusted for Transfer Pricing

By | October 6, 2026
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Royalty Benchmarked Under Aggregated TNMM Cannot Be Segregated and Separately Adjusted for Transfer Pricing Issue Whether payment of royalty on export sales, once benchmarked and accepted under an aggregated TNMM analysis for the manufacturing segment, can be segregated and separately benchmarked for an upward transfer pricing adjustment. Facts The assessee-company was engaged in the manufacturing,… Read More »

Land Classified as Industrial and Not Used for Agriculture Is a Taxable Capital Asset Ineligible for Section 54B Deduction

By | September 14, 2026
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Land Classified as Industrial and Not Used for Agriculture Is a Taxable Capital Asset Ineligible for Section 54B Deduction Land Classified as Industrial and Not Used for Agriculture Is a Taxable Capital Asset Ineligible for Section 54B Deduction Issue Whether an assessee is entitled to claim exemption from capital gains tax by classifying land as… Read More »

Tribunal Remands GST Refund Mismatch Issue for Fresh Assessment and Deletes Trade Payable Addition

By | September 7, 2026
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Tribunal Remands GST Refund Mismatch Issue for Fresh Assessment and Deletes Trade Payable Addition Issue Whether additional evidence regarding GST refund mismatch justifies remanding the Section 143(1) loss adjustment for de novo adjudication, and whether trade payable additions under Section 68 can survive when reconciliations are provided without contrary evidence from Revenue. Facts Return &… Read More »

Recurring digital marketing and routine IT service expenses are revenue expenditure, fully deductible under Section 37(1).

By | September 4, 2026
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Recurring digital marketing and routine IT service expenses are revenue expenditure, fully deductible under Section 37(1). Issue Whether routine expenses incurred on digital sales promotion (SEO, content generation, media management) and user-experience IT services (search optimization and auto-correct functions) constitute capital expenditure or allowable revenue expenditure under Section 37(1). Facts The assessee-company distributes financial service… Read More »

Compensation Received by BSNL Employees Under Voluntary Retirement Scheme 2019 Is Exempt Under Section 10(10B)

By | August 14, 2026
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Compensation Received by BSNL Employees Under Voluntary Retirement Scheme 2019 Is Exempt Under Section 10(10B) Issue Whether compensation received by BSNL employees under the BSNL Voluntary Retirement Scheme, 2019 qualifies as retrenchment compensation and is exempt from income tax under Section 10(10B) of the Income-tax Act, 1961. Facts The assessees were employees of Bharat Sanchar… Read More »