Tag Archives: Income tax Officer

Capital gains from building redevelopment belong to members, making additions under society’s PAN unjustified.

By | September 11, 2026
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Capital gains from building redevelopment belong to members, making additions under society’s PAN unjustified. Issue Whether capital gains arising from a building redevelopment contract executed by a cooperative housing society can be taxed in the hands of the society merely because transactions were registered under its PAN, when rights and consideration belong exclusively to individual… Read More »

Transfer pricing adjustments apply strictly to associated enterprise dealings, with profit margins determined by operational items.

By | September 11, 2026
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Transfer pricing adjustments apply strictly to associated enterprise dealings, with profit margins determined by operational items. Issues Whether Transfer Pricing (TP) adjustments under Chapter X can be applied at the entity level or must be restricted strictly to international transactions with Associated Enterprises (AEs). What principles govern the inclusion or exclusion of specific income and… Read More »

Date of transfer determines capital gains accrual, preventing substitution of subsequent higher transaction pricing.

By | September 11, 2026
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Date of transfer determines capital gains accrual, preventing substitution of subsequent higher transaction pricing. Issue Whether an assessee is entitled to deduction under Section 10AA when deduction claims were disallowed by the Assessing Officer for non-compliance and lack of documentary evidence, but partly allowed by the CIT(A) without seeking a remand report or verifying submissions… Read More »

Unexplained Expenditure Addition Under Section 69C Deleted as Bearer Cheque Source Was Verified From Bank Account

By | September 10, 2026
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Unexplained Expenditure Addition Under Section 69C Deleted as Bearer Cheque Source Was Verified From Bank Account Issue Whether an addition under Section 69C for unexplained expenditure can be sustained merely because the assessee failed to fully explain the purpose of excess bearer cheque payments, even though the source of funds was verified from the assessee’s… Read More »

Where Cash Deposits Match Business Sales Volume, Unexplained Cash Additions Limited to Estimated 10% Without Section 115BBE

By | September 10, 2026
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Where Cash Deposits Match Business Sales Volume, Unexplained Cash Additions Limited to Estimated 10% Without Section 115BBE Issue Whether cash deposits made by a pharmaceutical wholesaler during demonetization can be treated as entirely unexplained under Section 68 when sales are recorded, and whether a sustained estimated addition of 10% can be subjected to special tax… Read More »

Addition under Section 56(2)(vii)(b) is unsustainable when Permanent Alternate Accommodation is granted against relinquishing sub-tenancy rights without receipt of possession.

By | September 9, 2026
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Addition under Section 56(2)(vii)(b) is unsustainable when Permanent Alternate Accommodation is granted against relinquishing sub-tenancy rights without receipt of possession. Issue Whether an addition under Section 56(2)(vii)(b) can be sustained when the assessee acquired entitlement to Permanent Alternate Accommodation (PAA) directly in consideration for relinquishing existing sub-tenancy/occupancy rights under a redevelopment agreement, and where physical… Read More »

EPF/ESI delayed by web portal technical glitches is deductible under Section 36(1)(va).

By | September 9, 2026
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EPF/ESI delayed by web portal technical glitches is deductible under Section 36(1)(va). Issue Whether a one-day delay in remitting employee EPF/ESI contributions due to technical glitches and non-availability of the payment gateway/EPFO web portal beyond the assessee’s control constitutes a violation of Section 36(1)(va) disallowing the deduction. Facts Assessee & Assessment Year: The assessee is… Read More »

Penalties under Sections 271(1)(b), 271(1)(c), 271B, and 271F cannot survive if quantum additions are deleted.

By | September 8, 2026
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Penalties under Sections 271(1)(b), 271(1)(c), 271B, and 271F cannot survive if quantum additions are deleted. Penalties under Sections 271(1)(b), 271(1)(c), 271B, and 271F cannot survive if quantum additions are deleted. Issue Whether penalty under Section 271(1)(b) for non-compliance with notices can be sustained when the underlying quantum additions made in reassessment proceedings have been deleted… Read More »

Rebate under Section 87A cannot be restricted against Section 111A gains merely by administrative circular.

By | September 8, 2026
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Rebate under Section 87A cannot be restricted against Section 111A gains merely by administrative circular. Issue Whether an administrative circular (CBDT Circular No. 13/2025) can restrict or deny the Section 87A rebate against tax payable on short-term capital gains under Section 111A under the new tax regime (Section 115BAC) for Assessment Year 2025-26 when no… Read More »

Unaccounted cash paid for property by NRI medical professionals is plausible from accumulated cash salaries earned abroad.

By | September 8, 2026
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Unaccounted cash paid for property by NRI medical professionals is plausible from accumulated cash salaries earned abroad. Issue Whether an addition of ₹30 lakhs under Section 69A (and consequential higher taxation under Section 115BBE) as unexplained money is sustainable when the cash consideration paid for flat booking is adequately supported by the accumulated foreign cash… Read More »