Tag Archives: Principal Commissioner of Income-tax

Sanction granted en masse under section 153D without application of mind renders search assessments void.

By | October 21, 2026
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Sanction granted en masse under section 153D without application of mind renders search assessments void. Issue Whether mechanical prior approval granted under Section 153D en masse within less than 24 hours without application of mind invalidates consequential search assessment orders passed under Section 153A. Facts Search and Seizure Action: Reassessment/assessment proceedings were initiated against the… Read More »

Acquisition cost of toll collection rights by SPV is depreciable as an intangible asset; revision under section 263 quashed.

By | October 21, 2026
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Acquisition cost of toll collection rights by SPV is depreciable as an intangible asset; revision under section 263 quashed. Issue Whether the Principal Commissioner of Income Tax (PCIT) was justified in invoking section 263 on the ground that the Assessing Officer allowed depreciation on intangible assets without making necessary inquiries. Whether CBDT Circular No. 9/2014,… Read More »

Companies exceeding Rs. 200 crore turnover and free returnable test assets are excluded from taxation.

By | October 21, 2026
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Companies exceeding Rs. 200 crore turnover and free returnable test assets are excluded from taxation. Issue Whether an upper turnover filter of Rs. 200 crores is justified in transfer pricing benchmarking using TNMM when the assessee’s turnover is Rs. 21.34 crores. Whether adopting a Cash Profit Level Indicator (Cash PLI, excluding depreciation) is appropriate when… Read More »

Revision Order Under Section 263 Invalid Without Finding Mandatory Approval Under Section 153D Erroneous

By | October 17, 2026
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Revision Order Under Section 263 Invalid Without Finding Mandatory Approval Under Section 153D Erroneous Issue Whether the PCIT can validly invoke revisionary powers under Section 263 to set aside an assessment completed under Section 153C without recording a specific finding that the prior mandatory approval granted by the JCIT under Section 153D was erroneous or… Read More »

Interest On Enhanced Compensation Under Section 28 Is Capital Receipt Exempt Under Section 10(37), Rendering Section 263 Revision Invalid

By | October 16, 2026
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Interest On Enhanced Compensation Under Section 28 Is Capital Receipt Exempt Under Section 10(37), Rendering Section 263 Revision Invalid Issue Whether interest received under Section 28 of the Land Acquisition Act, 1894 on enhanced compensation for compulsory acquisition of agricultural land is exempt under Section 10(37) or taxable under Section 56(2)(viii), and whether the PCIT… Read More »

Mandatory Corporate Social Responsibility Contributions Eligible For Section 80G Deduction Independent Of Section 37 Disallowance

By | October 16, 2026
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Mandatory Corporate Social Responsibility Contributions Eligible For Section 80G Deduction Independent Of Section 37 Disallowance Issue Whether the Principal Commissioner of Income Tax (PCIT) can invoke revisionary jurisdiction under Section 263 to set aside an assessment order allowing a Section 80G deduction on CSR contributions that were added back under Section 37(1). Facts CSR Expenditure… Read More »

Revision under Section 263 Invalid When Assessing Officer Enquired and Applied Mind on MAT Adjustments

By | October 15, 2026
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Revision under Section 263 Invalid When Assessing Officer Enquired and Applied Mind on MAT Adjustments Issue Whether the Principal Commissioner of Income Tax (PCIT) can invoke revisionary jurisdiction under Section 263 merely to order further inquiries when the Assessing Officer (AO) has already conducted adequate inquiries and applied his mind to MAT adjustments during assessment… Read More »

Section 263 Revision Valid as Interest Embedded in Debenture-to-Share Conversion Remains Taxable under Section 56

By | October 14, 2026
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Section 263 Revision Valid as Interest Embedded in Debenture-to-Share Conversion Remains Taxable under Section 56 Issue Whether an assessment order completed under Section 147 without proper inquiry or application of mind by the Assessing Officer regarding accrued debenture interest is erroneous and prejudicial to the interests of the Revenue under Section 263. Whether interest income… Read More »

Additions in unabated Section 153A assessments without incriminating search material are unsustainable in law.

By | October 14, 2026
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Additions in unabated Section 153A assessments without incriminating search material are unsustainable in law. Issue Additions in Unabated Years under Section 153A: Whether additions or disallowances (such as unsecured loans under Section 68 and related interest, and Section 69A/69C additions) can be sustained in Section 153A assessments for completed/unabated assessment years without any incriminating material… Read More »

Intimation under Section 143(1) without adjustments is not an order and cannot be revised under Section 263

By | October 13, 2026
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Intimation under Section 143(1) without adjustments is not an order and cannot be revised under Section 263 Issue Whether an intimation issued under Section 143(1) without any statutory adjustments constitutes an “order” subject to revision by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income-tax Act, 1961. Whether a notice issued… Read More »