Tag Archives: Income tax Officer

No notional interest applies to debt-free AE receivables and reimbursed ESOP costs are deductible.

By | September 21, 2026
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No notional interest applies to debt-free AE receivables and reimbursed ESOP costs are deductible. Issue Whether transfer pricing adjustments by imputing notional interest on outstanding receivables from Associated Enterprises (AEs) are sustainable for a debt-free company, and whether ESOP/ESPP costs reimbursed to a foreign parent company are allowable as revenue expenditure under Section 37(1). Facts… Read More »

Reassessment under Section 148 is invalid when incriminating search material requires invocation of Section 153C.

By | September 19, 2026
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Reassessment under Section 148 is invalid when incriminating search material requires invocation of Section 153C. Issue Whether an assessment can be reopened under Section 148 on the basis of incriminating material seized during a search conducted on a third party prior to March 31, 2021, instead of resorting to Section 153C. Facts The assessee filed… Read More »

Stamp Duty Value Increase Post Land Conversion Paid by Buyer Cannot Trigger Section 56(2)(x) Addition

By | September 19, 2026
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Stamp Duty Value Increase Post Land Conversion Paid by Buyer Cannot Trigger Section 56(2)(x) Addition Issue Whether an addition under Section 56(2)(x) based on stamp duty valuation is justified when the higher stamp duty value resulted from land conversion funded entirely by the buyer and the underlying agreement was executed prior to the insertion of… Read More »

LLP Required to Audit Accounts Under LLP Act Gets Section 139 Extended Due Date to Carry Forward Loss

By | September 18, 2026
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LLP Required to Audit Accounts Under LLP Act Gets Section 139 Extended Due Date to Carry Forward Loss Issue Whether an LLP whose accounts are mandatorily required to be audited under the Limited Liability Partnership Act, 2008 read with Rule 24(8) of the LLP Rules is entitled to the extended due date (September 30) under… Read More »

Reassessment Order Passed Without Pecuniary Jurisdiction as per CBDT Instructions is Legally Unsustainable and Void

By | September 18, 2026
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Reassessment Order Passed Without Pecuniary Jurisdiction as per CBDT Instructions is Legally Unsustainable and Void Issue Whether a reassessment order passed by an ITO is legally valid when the returned income exceeds the pecuniary jurisdiction limit specified under CBDT Instruction No. 01/2011. Whether the deletion of a Section 68 cash credit addition by the CIT(A)… Read More »

Assessee is not entitled to Section 270AA penalty immunity in cases involving misreporting of income.

By | September 17, 2026
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Assessee is not entitled to Section 270AA penalty immunity in cases involving misreporting of income. Issue Whether an assessee is entitled to immunity from penalty under Section 270AA of the Income-tax Act, 1961 (corresponding to Section 440 of the Income-tax Act, 2025) when penalty proceedings under Section 270A are initiated for ‘under-reporting of income in… Read More »

Reassessment notice issued beyond three years with PCIT approval instead of specified higher authority is invalid.

By | September 17, 2026
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Reassessment notice issued beyond three years with PCIT approval instead of specified higher authority is invalid. Issue Whether a reassessment notice issued under Section 148 after three years from the end of Assessment Year 2016-17 with the approval of the Principal Commissioner of Income-tax (PCIT) instead of the higher specified authority under Section 151(ii) is… Read More »

Relevant Additional Evidence Admitted and Matter Remanded to CIT(A) for Re-evaluating Share Loss Genuineness

By | September 14, 2026
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Relevant Additional Evidence Admitted and Matter Remanded to CIT(A) for Re-evaluating Share Loss Genuineness Issue Whether additional documentary evidence (bank statements and CDSL transaction statements) establishing the purchase and sale of shares ought to be admitted under Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963, and the matter remanded to the CIT(A) for fresh… Read More »

Revision under Section 263 Upheld for Non-Deduction of Tax at Source on Remuneration and Hire Charges

By | September 14, 2026
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Revision under Section 263 Upheld for Non-Deduction of Tax at Source on Remuneration and Hire Charges Revision under Section 263 Upheld for Non-Deduction of Tax at Source on Remuneration and Hire Charges Issue Whether the Commissioner of Income Tax correctly assumed revisionary jurisdiction under Section 263 to set aside an assessment order as erroneous and… 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 »