Tag Archives: Joint Commissioner of Income-tax

Assessee Eligible for Depreciation, Various Deductions, and Exemptions; Ad Hoc Travel Disallowance Restricted to Ten Percent

By | September 30, 2026
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Assessee Eligible for Depreciation, Various Deductions, and Exemptions; Ad Hoc Travel Disallowance Restricted to Ten Percent Issue Whether the assessee-company is entitled to deductions, exemptions, and depreciation regarding block of assets, Section 14A disallowances, non-deduction of TDS on demurrage and consultancy, write-offs, business expenditures, and various operational expenses across assessment years 2009-10 to 2016-17. Facts… Read More »

Reassessment initiated for the initial three months was invalid as income was disclosed for AY 2021-22 under Companies Act.

By | September 21, 2026
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Reassessment initiated for the initial three months was invalid as income was disclosed for AY 2021-22 under Companies Act. Reassessment initiated for the initial three months was invalid as income was disclosed for AY 2021-22 under Companies Act. Issue Whether reassessment under section 147, along with notices under sections 148 and 226(3), is permissible for… Read More »

Delayed PF/ESIC contributions cannot be disallowed via Section 154 when the issue was debatable.

By | September 21, 2026
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Delayed PF/ESIC contributions cannot be disallowed via Section 154 when the issue was debatable. Issue Whether an Assessing Officer can invoke Section 154 to rectify an assessment and disallow delayed employees’ PF and ESIC contributions when the issue was legally debatable on the date of the rectification order, and whether such a rectification can be… Read More »

Addition under Section 68 for unsecured loans from financially sound entities is legally unsustainable.

By | September 17, 2026
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Addition under Section 68 for unsecured loans from financially sound entities is legally unsustainable. Issue Whether additions made under Section 68 of the Income-tax Act, 1961 (corresponding to Section 102 of the Income-tax Act, 2025) as unexplained cash credits on account of unsecured loans received by the assessee-company are legally sustainable, where the lenders established… Read More »

Mismatch Between Service Tax and Income Tax Records Due to Accounting Methods Cannot Justify Addition

By | September 15, 2026
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Mismatch Between Service Tax and Income Tax Records Due to Accounting Methods Cannot Justify Addition Issue Whether an Assessing Officer can make an addition for alleged suppressed turnover based solely on a mismatch between service tax returns and income tax returns, when the assessee consistently follows the Percentage of Completion Method (POCM) under Section 145.… Read More »

Ad hoc Disallowances, Form 26AS Additions, and Cessation Triggers Deleted; Flood Relief Expenses Remanded for Assessment

By | August 29, 2026
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Ad hoc Disallowances, Form 26AS Additions, and Cessation Triggers Deleted; Flood Relief Expenses Remanded for Assessment Issue Whether ad hoc expense disallowances, section 40(a)(ia) penalties for non-compliance with section 194C(7), section 41(1) additions on outstanding trade advances, section 26AS interest adjustments without accrual, high repair expenses on leased property, infrastructure sharing payments, and section 43B… Read More »

Assessment Order Passed Without Granting Adequate Time to Reply Set Aside for Breach of Natural Justice

By | August 17, 2026
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Assessment Order Passed Without Granting Adequate Time to Reply Set Aside for Breach of Natural Justice Assessment Order Passed Without Granting Adequate Time to Reply Set Aside for Breach of Natural Justice Issue Whether an assessment order passed under Section 143 within five days of issuing a show-cause notice—without granting the assessee’s request for reasonable… Read More »

No TDS Applies to Cost Reimbursements Where Tax Was Deducted at Source Initially

By | August 13, 2026
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No TDS Applies to Cost Reimbursements Where Tax Was Deducted at Source Initially No TDS Applies to Cost Reimbursements Where Tax Was Deducted at Source Initially Issues TDS on Reimbursement of Apportioned Expenses: Whether Section 40(a)(ia) applies to payments made by an assessee to an association towards reimbursement of its share of legal expenses where… Read More »

Section 14A does not apply to non-income receipts governed by the doctrine of mutuality.

By | August 5, 2026
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Section 14A does not apply to non-income receipts governed by the doctrine of mutuality. Issue Whether Section 14A of the Income-tax Act, 1961 applies to interest receipts from head office/overseas branches that fall outside the definition of ‘income’ under Sections 2(24) and 4 due to the doctrine of mutuality. Facts The assessee, a foreign bank… Read More »

Rental income applied to charitable objects and reasonable CEO remuneration do not forfeit trust exemption.

By | August 3, 2026
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Rental income applied to charitable objects and reasonable CEO remuneration do not forfeit trust exemption. Issue Rental Income & Commercial Activity: Whether a charitable trust forfeits exemption under Sections 11 and 12 when it earns substantial rental income by leasing trust property, where such leasing is empowered by the trust deed and the receipts are… Read More »