Tag Archives: Principal Commissioner of Income-tax

Actuarial Deficit Contributions to Approved Funds Exceeding Statutory Ceilings Are Taxable Revenue Deductions

By | September 14, 2026
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Actuarial Deficit Contributions to Approved Funds Exceeding Statutory Ceilings Are Taxable Revenue Deductions Issue Whether contributions paid to an approved Superannuation Fund and Gratuity Fund to bridge an actuarial deficit—exceeding the standard percentage ceilings specified under the Income-tax Rules—are allowable deductions under Section 36(1)(iv) and Section 36(1)(v). Whether employee PF contributions deposited by an assessee… Read More »

Renewal of registration under Section 12AB cannot be denied based on Section 13 violations or old search material.

By | September 12, 2026
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Renewal of registration under Section 12AB cannot be denied based on Section 13 violations or old search material. Issue Whether the Principal Commissioner of Income Tax (PCIT) can deny renewal of registration under Section 12AB by examining specified violations or fund diversions beyond the immediately preceding three years as stipulated in Rule 17A(g). Whether an… Read More »

Revision under Section 263 upheld for unexamined ECB interest capitalization but set aside on plausible views and roving TDS inquiries.

By | September 12, 2026
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Revision under Section 263 upheld for unexamined ECB interest capitalization but set aside on plausible views and roving TDS inquiries. Issue Whether PCIT properly exercised revisionary power under Section 263 regarding capitalization of ECB interest where the Assessing Officer (AO) conducted no inquiry into the actual utilization of borrowed funds. Whether PCIT’s direction to verify… Read More »

Reopening assessment based on issues fully queried and accepted during original scrutiny constitutes an impermissible change of opinion.

By | September 11, 2026
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Reopening assessment based on issues fully queried and accepted during original scrutiny constitutes an impermissible change of opinion. Reopening assessment based on issues fully queried and accepted during original scrutiny constitutes an impermissible change of opinion. Issue Whether initiating reassessment proceedings under Section 147 read with Section 148 on issues that were explicitly queried, examined,… Read More »

Closing stock accepted in preceding year automatically constitutes opening stock for subsequent year.

By | September 11, 2026
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Closing stock accepted in preceding year automatically constitutes opening stock for subsequent year. Issue Whether the Assessing Officer was justified in revaluating the opening stock as on 01.04.2013 and disallowing interest on an undisputed outstanding credit carried forward from the preceding year without rejecting the books of account under Section 145. Facts Stock Valuation Issue:… Read More »

Statutory limits on contributions do not apply to extraordinary payments bridging actuarial fund deficits.

By | September 11, 2026
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Statutory limits on contributions do not apply to extraordinary payments bridging actuarial fund deficits. Issue Whether the statutory ceiling limits under Rule 87 (for superannuation funds) and Rule 103 (for gratuity funds) apply to extraordinary, ad-hoc contributions made by an employer solely to bridge actuarial deficits and ensure fund solvency. Facts Superannuation Contribution: For AY… Read More »

Attached Immovable Property Sale Barred By Limitation As Pre-2019 Three-Year Rule 68B Time Limit Applied

By | September 10, 2026
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Attached Immovable Property Sale Barred By Limitation As Pre-2019 Three-Year Rule 68B Time Limit Applied Issue Whether the sale of the petitioner’s attached immovable property was barred by limitation under Rule 68B of the Second Schedule to the Income-tax Act, 1961, when the original three-year limitation period expired before the 2019 amendment extending the limit… Read More »

Employee Entitled to TDS Credit and Refund Even If Employer Fails to Deposit Tax

By | September 10, 2026
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Employee Entitled to TDS Credit and Refund Even If Employer Fails to Deposit Tax Issue Whether the Income-tax Department can deny TDS credit, raise demands, or recover tax from an employee when tax was deducted at source by the employer but not deposited with the Central Government, and whether TDS deduction can be established using… Read More »

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 »