Tag Archives: Principal Commissioner of Income-tax

Charge over Seized Cash Extinguishes Once Searched Person’s Assessment Concludes, Entitling Assessee to Refund Credit

By | September 9, 2026
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Charge over Seized Cash Extinguishes Once Searched Person’s Assessment Concludes, Entitling Assessee to Refund Credit Charge over Seized Cash Extinguishes Once Searched Person’s Assessment Concludes, Entitling Assessee to Refund Credit Issue Whether, after the assessment of the searched person was completed with no demand, the Department’s charge over seized cash under Section 132B stood extinguished,… Read More »

Disallowance calculated under Section 14A read with Rule 8D cannot be added back to Section 115JB book profit.

By | September 8, 2026
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Disallowance calculated under Section 14A read with Rule 8D cannot be added back to Section 115JB book profit. Issue Whether disallowance computed under Section 14A read with Rule 8D of the Income-tax Rules, 1962, can be added back while calculating “book profit” under Section 115JB of the Income-tax Act, 1961, for Assessment Year 2016-17. Facts… Read More »

Interest on loans used to invest in shares for business expansion is deductible under Section 36(1)(iii).

By | September 8, 2026
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Interest on loans used to invest in shares for business expansion is deductible under Section 36(1)(iii). Interest on loans used to invest in shares for business expansion is deductible under Section 36(1)(iii). Issue Whether interest expenditure on borrowed funds utilized to invest in the shares of another company is allowable as a business deduction under… Read More »

Assessee-trust entitled to set-off as Section 68 addition of 10-year-old land advance is unsustainable.

By | September 7, 2026
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Assessee-trust entitled to set-off as Section 68 addition of 10-year-old land advance is unsustainable. Assessee-trust entitled to set-off as Section 68 addition of 10-year-old land advance is unsustainable. Issue Whether an advance received towards the sale of land in FY 2006-07 can be taxed as unexplained cash credit under Section 68 in AY 2016-17 on… Read More »

Absence of Section 143(2) Notice Renders Reassessment Non-Est, Precluding Revisionary Jurisdiction Under Section 263

By | September 5, 2026
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Absence of Section 143(2) Notice Renders Reassessment Non-Est, Precluding Revisionary Jurisdiction Under Section 263 Issue Whether a reassessment order passed under Section 147 read with Sections 144 and 144B without issuing a mandatory notice under Section 143(2) is legally valid, and whether the Principal Commissioner of Income Tax (PCIT) can exercise revisionary power under Section… Read More »

Statutory Body National Dairy Development Board Exempt From Section 115JB MAT Provisions and Section 14A Book Profit Adjustments

By | September 5, 2026
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Statutory Body National Dairy Development Board Exempt From Section 115JB MAT Provisions and Section 14A Book Profit Adjustments Issue Whether Section 115JB (Minimum Alternate Tax) and consequential adjustments under Section 14A to book profits apply to a statutory body established under a specific Act of Parliament. Facts Assessee Status: The assessee is the National Dairy… Read More »

Revision Under Section 263 Quashed as Contribution to Approved Gratuity Fund Exceeding 8.33% Is Allowable

By | September 5, 2026
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Revision Under Section 263 Quashed as Contribution to Approved Gratuity Fund Exceeding 8.33% Is Allowable Issue Whether the Principal Commissioner was justified in invoking revisionary jurisdiction under Section 263 to disallow an assessee’s actuarially-determined contribution to an approved gratuity fund on the ground that it exceeded the 8.33% salary limit specified in Rule 103 of… Read More »

Actuarially backed superannuation contributions to remedy severe fund deficits are fully deductible without Rule 87 ceiling limits.

By | September 4, 2026
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Actuarially backed superannuation contributions to remedy severe fund deficits are fully deductible without Rule 87 ceiling limits. Issue Whether an employer’s contribution to an approved superannuation fund to cure an actuarial deficit is subject to the 27% salary limit prescribed under Rule 87 of the Income-tax Rules, 1962, or deductible under Section 36(1)(iv) of the… Read More »

Contractually Mandated Provision for BOT Major Repairs Based on Scientific Estimates Allowable Under Section 37(1)

By | September 3, 2026
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Contractually Mandated Provision for BOT Major Repairs Based on Scientific Estimates Allowable Under Section 37(1) Issue Whether a provision created for major repair and overhauling expenses, contractually mandated under a Build-Operate-Transfer (BOT) concession agreement and computed on a scientific basis, is allowable as a deductible business expenditure under Section 37(1) for the current assessment year… Read More »

Revision Under Section 264 Is Maintainable Post-Limitation Expiry If No Appeal Is Filed

By | September 2, 2026
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Revision Under Section 264 Is Maintainable Post-Limitation Expiry If No Appeal Is Filed Issue Whether a revision petition filed under Section 264 of the Income-tax Act, 1961 (Section 378 of the Income-tax Act, 2025) is maintainable when the limitation period for filing an appeal against the assessment order has expired without any appeal or condonation… Read More »