Gross sale consideration is not “income escaping assessment” for invoking the extended limitation period under Section 149(1)(b). Issue Whether a reassessment notice issued under Section 148 on April 2, 2022, for the Assessment Year (AY) 2015-16 is barred by limitation under the provisions of Section 149 as amended by the Finance Act, 2021. Whether the… Read More »
An assessment order is legally unsustainable and deemed unreasoned if it summarily treats bank credits as unexplained under Section 68 without evaluating the explanation offered by the taxpayer. Issue Whether a reassessment order passed under Section 147 read with Section 144B is legally valid if the Assessing Officer (AO) summarily treats book-entered bank credits as… Read More »
Deeming fiction under Section 56(2)(x) cannot be applied retrospectively to transactions executed before its statutory effective date. Issue Whether the deeming provisions of Section 56(2)(x) can be invoked for the Assessment Year (AY) 2017-18 to tax the difference between the Stamp Duty Value (SDV) and the actual purchase consideration of a property, given that the… Read More »
Bonus shares held as long-term investments yield exempt LTCG, overriding their original stock-in-trade classification per CBDT circular. Issue Whether the gains arising from the sale of bonus shares should be taxed as Business Income under Section 28(i) on the ground that the original underlying shares were held as stock-in-trade, or if they qualify as Long-Term… Read More »
Rebate under Section 87A is computed on the “total income” and cannot be denied on tax payable for Short-Term Capital Gains under Section 111A. Issue Whether the Central Processing Centre (CPC) / Assessing Officer is legally justified in restricting the tax rebate under Section 87A only to the tax computed on normal slab incomes, thereby… Read More »
Property investment by a homemaker funded directly via her father’s bank account cannot be taxed under Section 69 merely for lacking a gift deed. Issue Whether an investment in an immovable property by a homemaker can be treated as an unexplained investment under Section 69 read with Section 115BBE when the entire purchase consideration was… Read More »
High Court precedent binds TPO on comparables, while healthcare and IT services are functionally distinct from market research. Issue Whether the Transfer Pricing Officer (TPO) is justified in selectively applying filters and excluding historically accepted comparables despite binding High Court precedents, and whether software depreciation (60% vs 25%) and international travel expense disallowances warrant fresh… Read More »
Reassessment Based on Third-Party Digital Data Lacking Clear Evidence of Cash Receipt Deserves to Be Quashed Reassessment Based on Third-Party Digital Data Lacking Clear Evidence of Cash Receipt Deserves to Be Quashed Issue Whether a reassessment notice under Section 148 and its underlying order under Section 148A(3) can be legally sustained if they are based… Read More »
Reassessment Based on Third-Party Loose Papers Lacking a Live-Link and Relying on Retrospective Notional Rates Is Legally Unsustainable Issue Whether a reassessment notice under Section 148 can be validly issued based on loose paper entries seized from a third-party real estate broker, where the Revenue fails to establish a “live-link” to the petitioner and applies… Read More »
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 »