Tag Archives: Income tax Officer

Deeming fiction under Section 56(2)(x) cannot be applied retrospectively to transactions executed before its statutory effective date.

By Ashwani Kumar | June 20, 2026

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.

By Ashwani Kumar | June 20, 2026

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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.

By Ashwani Kumar | June 19, 2026

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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.

By Ashwani Kumar | June 19, 2026

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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.

By Ashwani Kumar | June 19, 2026

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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 »